The stock market has finally turned green now that the US Iran ceasefire updates have started to gain momentum. That being said, serendipitous as this may seem, the month of April has historically been dubbed the most bullish month for the stock market, ushering in a new wave of excitement for investors to bank on. What is this update all about?

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April: The Most Bullish Month For Investors

April has been touted as one of the most bullish months for the stock market. Per the latest post by the Kobeissi Letter, the MSCI index is a benchmark index tracking large- and mid-cap stocks across 23 markets. This index has historically posted positive gains in the month of April, with a win rate of nearly 75%. This development has led the stock market enthusiasts to look forward to April, yearning for some good news and revenue opportunities.

The post later shared how April has historically delivered +2.0 returns, the strongest among all months. Moreover, these sorts of upticks have largely been delivered by the US stocks, which cover nearly 70% of the index.

“April is historically one of the best months of the year for stocks. Over the last 25 years, the MSCI World Index has posted positive returns 75% of the time in April. Over this period, the average monthly return has been +2.0%, the strongest of any month. This has been particularly driven by US stocks, which have a ~70% weight in the index. Meanwhile, the S&P 500 has gained +1.3% on average in April since 1928, the 2nd-best month of the year after July. This is also double the overall monthly average return of +0.7%. Seasonality favors the bulls this month.”

US Household Stock Exposure At Record Highs

With the stock markets being touted as one of the most lucrative forms of revenue generation, the US households are also joining this growing race of diversification. An earlier post by KL outlines how the US household exposure to stocks has now hit a new peak, with equities making up nearly 25.63% of the total US household net worth.

“US household exposure to the stock market has never been higher. Equities now make up 25.63% of total US household net worth, the highest since data began in the 1940s. This surpasses the 2000 dot-com bubble peak of 19.56% and the 1968 high of 22.01%. The percentage has almost TRIPLED since the 2008 financial crisis low of 8.77%. This means a significant correction in stocks could trigger a sharp pullback in spending, particularly among higher-income households who drive a significant part of consumption.”

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