Seasonal Equity Program
Seasonal Equity ProgramThe last decade has brought market volatility which has not been seen since the 1920s and 1930s. With this in mind, it may be prudent to look at historical precedent and any patterns that this may yield. The good news? We do this for you.
Seasonal Equity Markets Research by GLSA
The research at G.L. Smith & Associates has shown strong “Seasonal” price movements in the general equity markets.
Over the years, we have noticed that most price increases took place in the November to May time periods. The intuitions of a seasonal pattern in the markets were not formalized until the high volatility we have experienced in recent years caused us to seek greater risk controls. The results of our research are very convincing, and they were magnified when we used momentum indicators as an overlay to the six-month strategy. We tested the mutual funds and have found equally compelling results.
Briefly stated, the empirical evidence persuades us to favor one six-month period over another. These patterns have existed for over 50 years.
In our ongoing efforts to increase returns and reduce risks for our clients, we have established a methodical program to take advantage of seasonal price patterns. We encourage you to call your financial advisor to see if this may be useful for your investment program.
Contact GLSA today to meet with a financial advisor about seasonal trends in equity markets to determine if one of these investment strategies is a good fit for your financial goals.