Bond market seasonlity is turning positive


First of all I have to say investors buy bonds for capital gains not for income. How? I have a video on www.peterdag.com and posted also on this blog showing why this point is important.

The above chart shows the seasonality of bonds. The relevant trend is bonds are strong (they appreciate in price) from May to the end of the year.

I also recognized this pattern when I was managing $3 billions of interest rates derivatives for a large corporation.

This pattern is important. Why? Because stocks do not perform well during the summer months (see previous post).

This seasonality feature is very useful in developing an investment strategy from May to October.

George Dagnino, PhD
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses. 

No comments: