The Dow's Winning Streak Isn't So Impressive. It's Still Good News for Investors.

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The Dow Jones Industrial Average has risen every day this month and was on track to bring the winning streak to eight days, but the stretch itself isn’t that abnormal.

The Dow is up 4.5% over the past eight sessions, which is on track to be the longest streak of the year so far. It was up 157 points, or 0.4%, on Friday.

“While that sounds impressive, there have been two other streaks of as long or longer since last summer, and the current seven-day streak is the fourth since last July,” writes Bespoke Investment Group co-founder Paul Hickey. “Last July, there was a thirteen-day winning streak (tied for the longest since at least 1953) while in December, the Dow was up nine days in a row.”

The Dow gained 4.17% over that nine-day streak. But this streak is also only the best eight-day stretch for the Dow since the period ending on Nov. 8, when it rose 5.2%, according to Dow Jones Market Data.

Hickey notes that there have been 93 seven-day streaks since 1953 and 51 eight-day streaks. But what comes after a streak? Generally gains. Hickey notes that whether it’s after a seven-day streak or eight-day streak, forward returns over the three-month, six-month, and twelve-month periods have been above the longer-term average for such periods since 1953.

“It may sound counterintuitive that forward returns, in the aggregate, do not show some reversion to the mean after a period of above-average returns, but it comes back to a point we’ve made in looking at performance following other similar strong moves,” he writes. “These types of streaks tend to occur in bull markets, and bull markets are, by definition, periods of above-average returns.”