Big stock gains this year bode well for next ... or not

|By:, SA News Editor

2014 could be a good year for stocks if history going back to 1927 holds, says LPL's Jeffrey Kleintop, who finds double-digit average positive returns in the years following 25-30% gains for the S&P 500. In fact, he says, most big years were followed by several years of strong advances.

Mark Hulbert - focusing on the DJIA and going back to the late 1890s - finds the advantage following 20% plus gains disappears. "The stock market’s odds in a given year are almost completely independent of what it did in the previous year."

S&P 500 and DJIA ETFs: SPY, SH, DIA, SSO, SDS, IVV, SPXU, UPRO, VOO, DOG, RSP, DXD, RWL, EPS, UDOW, SDOW, DDM, BXUB, TRND, SFLA, BXUC, BXDB