The above chart shows the stock market has the tendency of rising from the end of October to the end of May. This is when the last seasonality gasp occurs.
Then the market peaks in May and performs poorly from the end of May to the end of October. Stocks do not have to crash during the summer months. They just provide low returns.
It might be useful to try to think about different investment strategies for the summer months. After all, "Sell in May and go away" might turn out to be right this year.
Following reliable indicators might be one way to recognize if the trend of the market is changing.
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Editor, The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months.
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STRATEGIC INVESTING FOR UNCERTAIN TIMES. 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.
STRATEGIC INVESTING FOR UNCERTAIN TIMES. 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.
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