Stock Market Seasonality

2009-06-07

As mentioned, I've been doing a lot of research into economics and finance of late, with an eye toward practical steps I can take to strengthen my financial base and build on that base via relatively low-risk investments. During my reading yesterday, I came across a striking quote from an article by Graham Summers at the Seeking Alpha website:

According to the Ned Davis (NDR) database, had you invested $10,000 in the S&P 500 every May 1st starting in 1950 and sold October 31 of the same year, your initial position would only be worth $10,026 today. Put another way, by investing only from May through October, a $10,000 stake invested in 1950 would have only made $26 in 57 years. In contrast, $10,000 invested in the S&P 500 on November 1st and sold April 30th would have grown to $372,890. Out of 58 years, you would have had 45 positive and only 13 negative.

Noted for future reference...


Peter Saint-Andre > Journal