The best time during the past 60 years to enter North American equity markets has been at the opening of trade on October 28. How does the entry point look this year?
Thackray’s 2012 Investor’s Guide to be released on Nov. 7 notes that the best period to own U.S. equities during the past 60 years has been from Oct. 28 to May 5. A $10,000 investment in the S&P 500 Index purchased each year on Oct. 28 since 1950 and sold each year on May 5 during the past 60 periods increased in value to $1,057,851 by May 5 2011. The trade was profitable in 52 of the past 60 periods.
In contrast, a $10,000 investment in the S&P 500 Index purchased each year on May 6 and sold each year on Oct. 27 fell in value to $6,862. Calculations did not include dividends or commission costs.
The best period to own Canadian equities is identical.