Buy In October and Get Yourself Sober

JC Parets
October 20, 2021

They love writing about 'Selling in May and going away'.

Every year, they just can't get enough of it.

But what about, "Remember to buy in November"?

Historically the best 3 month period of the year for stocks is from November through January.

As my pal Jeff Hirsch likes to say, "Buy in October and Get Yourself Sober".

Here are all the seasonal cycles for the S&P500. The Green line includes every year since 1950 (1-year Cycle), the Blue line includes every year ending in 1 since 1951 (Decennial Cycle), and in Gray every post-election year since 1953 (Presidential Cycle):

As you can see here, these lines go up and to the right to end the year.

We create a composite of all 3 cycles and you can see that cleaner here in Blue:

Do stocks follow this trend? Or do they ignore it?

We discussed all of this on last night's call.

Premium Members can watch the entire discussion and download the slides here:

Let me know what you think!

JC

 

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