"Year-end rally", or "Sell in May and go away" – investors are aware of a certain amount of seasonal lore when it comes to stock indices. But is it real? And if it is, when does the Dow begin its year-end rally? SeasonalCharts.com shows you exactly where the market’s seasonal trends can be found. One glance and seasonal relationships are clear.
For some it will be surprising to learn that stock market seasonality is rather dominant and no less so then that found in the grain markets. There are seasonal trends in many more markets then one might initially believe.
Nevertheless, please remember our risk disclaimer. Even professionals find forecasting stock price movement difficult. Seasonal trends can only be a forecasting aid. The many other factors influencing the stock market must also be considered, such as changes in interest rates, company profits, and general market sentiment. Used sensibly, seasonality should account for about 10% to 25% of factors weighed in an investment decision.