Tax Season: The Aftermath

Last week we highlighted how the market's performance during the week before the tax deadline day is negatively impacted when the S&P 500 rises in the prior calendar year vs. years when it falls in the prior year.

Following up from that analysis, we also examined how the market tends to perform in the week after the tax deadline day. While the week after tax day is generally positive (36 up years vs. 15 down years), investors should be prepared for some volatility as the average S&P 500 return is greater than one percent in both up years and down years. Finally, in the last twelve years, the market's record has been perfect as it has risen the week after tax day every year for an average gain of 1.6%.