Market Outlook 10-31-21
Market Seasonality, Major ETFs, BPSPX, Leading Sectors/Industries, Oil
Good afternoon traders and investors,
If you’ve been in the markets for more than a year or two, you’ve heard the famous market phrase before:
“Sell in May and go away”
Well, for that to be good advice, wouldn’t it be nice to know when we are supposed to come back?
After participating in the markets for a couple of decades, I can say that November is often an excellent time for bullish seasonality. But let’s take a look at the historical seasonality to be sure.
Seasonality:
First, let’s look at the May 1 - Oct 31 seasonality (71 years of data):
Average return: +1.17%
Annualized return: +2.35%
Ok, so if we sold in May and came back on Nov. 1, what would the historical returns look like?
Nov 1 - April 30 seasonality (71 years of data):
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