Best 6 Months to Invest

September 15, 2018 | Filed under: Financial, Stock

Alright I was not going to do this, but this is such a cool gem of information, I can’t resist telling you.

There are several seasonal patterns, that are prevalent 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 information 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 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.

Buy and Hold does not work. Time learn some simple and effective money management, and investment strategies that ROCK. That will give you more gold in your golden years!

Buy 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, 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?

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