<2> Stocks May Shake Off Iran Fears and Move Higher in March: 6 Reasons to Watch
<3> Seasonality Favors Stocks
Investors often overlook the significance of seasonality in the stock market. However, historical data suggests that stocks tend to perform well during the first quarter of the year. According to < href='https://bloomberg.com' target='_blank'>Bloomberg, the S&P 500 has averaged a gain of 1.3% in March over the past 20 years. This trend could contribute to a positive start to the quarter, despite ongoing concerns about Iran.
<3> Options-Market Positioning Points to Higher Stocks
The options market is another indicator that stocks may move higher in March. According to < href='https://cnbc.com' target='_blank'>CNBC, the put-call ratio, which measures the number of put options bought compared to call options, has been declining in recent weeks. This suggests that investors are becoming more bullish on the market, which could lead to higher stock prices.
<3> Other Factors Bode Well for Stocks
In addition to seasonality and options-market positioning, a handful of other factors point to higher stocks in March. These include:
<3> Low Volatility