
Information for retirees and future retirees on asset preservation and income planning. Last radio show featured on "Securing your Retirement" KLAY 1180AM. Opinions and views-not recommendation for sale or purchase of products. Consult with a financial advisor. Licensed insurance agent, investment advisor. Investment Advisory Services offered through Retirement Wealth Advisors, Inc., an SEC Registered Investment Advisor.
Friday, June 1, 2012
Some thoughts about seasonality and Election Year Trends
Typical seasonal patterns would normally show the market moving higher through the beginning of May, experience a pullback in the second quarter, and a larger pullback in September, October before heading higher again beginning in November. This year reflects that typical performance, as the market has been in “Sell in May and Go Away” mode, with the S&P 500 down nearly 6% this month.
Since many often wonder about the upcoming elections, election years usually differ from traditional seasonality in that they tend to bottom sooner than average years, especially if the incumbent party is reelected. During election years the market typically makes a progress during the summer months, and late June lows likely mark the low for the year.
Market performance during September, November might be a leading indicator of the outcome of the presidential election.
In years in which the incumbent is reelected, the market usually moves up nearly 4% in those 3 months.
In years where the incumbent loses the market may experience an average loss of roughly 5% during the months of September, November.
Once again these are just a reflection of thoughts and opinions shared from different sources and are not meant as recommendation to by or sell any products.
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