"Sell in May and Go Away." That seasonal weakness will go away at the end of October. This is good news because all but 0.4 percentage point of the market's annualized return since 1896 has been produced in the winter months. In other words, almost all the returns of the Dow took place from November to May.
Although October is the most volatile month for the stock market of the entire calendar, its average gain has been 0.9% since 1950. The month known for the 1929 crash, Black Monday in 1987 and other mid-autumn market crises is actually very tame, most of the time.
This year October started with a negative bias. The good news is that at the end of October we can look forward to the end of the year rally.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
Ranked No. 1 market timer by Timer Digest
No comments:
Post a Comment