Interesting tidbit...
``April to October is a particularly weak period for the market and within that you ride
the seasonal waves,' said Elaine Yager, senior technical analyst at Herzog, Heine,
Geduld.
Indeed, the tendency for stocks to fall in late summer is convincing.
For the broader S&P 500 index, September is the worst month of the year and the
index's performance from May to October pales in comparison to its gains from
November through April, according to a leading historian on the stock market.
Yale Hirsch, editor and publisher of The Stock Trader's Almanac, a bible of facts and
figures that is now in its 33rd edition, said that $10,000 invested in the S&P 500 in
1950 in the better-performing period would have generated a profit of $340,250.
For the other six months, the same $10,000 investment would have yielded meager
earnings of $11,138 since 1950, he said.
Likewise, the Dow industrials gained a total of nearly 9,500 points in the
November-April period since 1950, but it racked up a gain of only 1,120 in the other
six-month period, Hirsch said. |
