Best Time To Invest is November – April. Theoretically
Dec 8, 2008 Small Cap Stock Picks, Stock Market News
This was a really interesting article i just read about how statistically the the returns from november – april insanely dominate over the rest of the months in the year says the stock traders almanac dating back to 1950.
Quote:
“The best time to invest in stocks is from November to April, according to the Stock Trader’s Almanac for 2009. In fact, say authors Jeffrey and Yale Hirsch, most of the long-term gains in stocks occur in these six months.
Say an investor put $10,000 into the stocks of the Dow Jones Industrial Average (DJIA) during the six months to April 30, 1950. Then they rolled the proceeds successively into the same six months every year to 2008. The $10,000 would have gained $531,444. If they did the same thing from May 1 to Oct. 30, the $10,000 would have gained a mere $1,021. ”
Thats an astonishing # to eye witness comparing the two terms. Well, looks like we just got the shit show out of the way according to statistical history. Hopefully now we see some better opportunities arise in the market through out April. I remember the first 4 months of 2007 to be awesome, trading opportunities all over the place. Of course, We weren’t in a fucked up world of economic failure. So the circumstances are definately different by a long shot. So hopefully we’re at least a little better off than we have been the past 3 months. Thats all i ask.
Tags: DOW, market, stock traders, stocks
