Many investors don’t think much about seasonality — but they probably should.
Seasonality is the tendency for certain things to happen based on the calendar. In our everyday lives, we follow seasonality without realizing it. If you live in a cold-weather region, you’re thinking about winter. You’re scheduling an appointment to swap snow tires onto your car and running your home’s heat to make sure everything works before it gets much colder.
You could be doing the same thing with your portfolio…
As winter nears, so does an important seasonal trend. We’re entering the “best six months,” a time of year when stock prices tend to deliver significant gains.
The next six months — half of the “Sell in May” stock market strategy — is a well-known seasonal tendency. But there are others, of course.
I prepared a short video to help you understand why seasonals are important for investors to understand. I use a real-world example you’re probably familiar with: holiday shopping for toys. The investment implications of this tradition are important to understand.
Then, I show how you can identify and benefit from less obvious seasonal patterns. On that note, I’m working closely with my Money & Markets team to finalize the details of a brand-new seasonality strategy.
I’ll have all the details for you in exactly one week, but you can go ahead and put your name on the list now. I’ll send you some additional free resources related to this strategy before next week’s reveal.
Let’s get into seasonality. Click here or on the thumbnail below to start watching now.
If you’d like to jump to a specific topic, I’ve provided some timestamps below:
- Understanding Seasonality 1:14
- Retail Seasonality 5:42
- Well-Known Seasonal Patterns 10:56
- Forecasting Price Trends 19:27
- Research Conclusions 21:37
I’ll have even more in my upcoming presentation next week. Click here to make sure you’re on the guestlist. And if you have any questions about seasonality or trading during the best six months of the year, reach out to StockPower@MoneyandMarkets.com.
Until next time,
Mike Carr
Chief Market Technician
