The old saying from our friend Jeff Hirsch goes, “Buy in October and Get yourself Sober”.
Did you listen?
And it’s not so much about literally buying blindly in October, and more about the fact that stocks tend to end their seasonal corrections around that time, before going on to rally into the end of the year.
And that’s exactly what we’ve seen.
Here is the 4-year seasonal cycle, which of course, suggested strength in equities since mid-term elections last year. And we certainly saw it.
Then the Q3 correction came and went, again all perfectly normal.
And finally that year end strength, which of course we’re seeing: [Read more…]