Best and 6 Months to Invest
Simple strategies can make a major difference! The money movement strategy is a great example. Applied over time, high probability investment patterns are winners. Any time we see patterns with 80-90 percent probability we take interest. Well there are seasonal investment patterns that over time can make a TON of money.
Several seasonal patterns that are prevalent and predictable in the stock market. Yet, likely your financial expert, does not know them or even worst, they do and they don't tell you about them. Ever heard the term "Sell in May and go away"! Well it is based on 60 plus years of investment data that basically says.
The best 6 months to invest are Nov 1, through April 30. On average you would have earned about 7.4% in the DOW for each 6 month period since 1950.
The worst months to invest are May 1 through Oct 31. On average you would have earned in the DOW .4% during these 6 months. Hey listen, any time your Rate of Return starts with a . (Point) that is not a good thing.
So how do you use this information? Well for starters, let us take control of our mutual funds, and retirement accounts. Let us tell the administrator, or broker, NOV 1 I want to be in equities, or DOW stocks. Get me out of those positions the last few days of April.
May 1 through Oct 31, put me in a balanced or income fund (maybe bonds) or treasuries. Even cash would be good. Cause the likely hood is the market is going to be flat during this time and we still want our money to work.
Courtesy of Stock Almanac take a look at the last 60 years of history.

Well what would have happened this last year? Let us take a look below.

At least a 12% pop on the DOW (maybe more depending where you got in and out), if you followed that strategy Nov-Apr. If you had of just held your position, the BUY and HOLD strategy, you gave back all your profits. Buy and Hold does not work.
By the way, here is a little BONUS if you had of played this seasonal pattern for the last 60 years. Remember I said, SAFETY or capital preservation was a key to investing in the stock market? Many investors do well, but then blow up and lose 20, 30, and 40 percent of their account or even more, in a few days or months. That set back (like the one in OCT 2008 for many folks) can be devastating. WELL, if you played this seasonal pattern, you would have missed the 3 Major market corrections (CRASHES) of the last 60 years. Including the crashes of 1929, 1987 and the most recent in 2008. How is that for bonus?
Time learn some simple and effective money management, and investment strategies that ROCK. That will give you more gold in your golden years! By the way, was this one concept (strategy) worth $30 bucks? Bet you said yes. If so, click here now! |