Every summer newspaper articles are published discussing the beneﬁ ts of being in the market for the “Summer Rally.” The summer rally is a myth!
If there is a rally in the summer it typically occurs up until mid July. The subsequent period from July 19th to October 27th tends to be negative and provides a poor risk-reward proﬁ le for the broad markets. Of course there are sectors that do well in the summer months, but investors have to be selective.
In future newsletters I will discuss both the summer rally myth and potential sector investments for the summer months.
In summary, if the markets perform well at the end of June and the beginning of July, do not fall in love – markets can be ﬁckle and easily betray.
…..read much more in Brooke Thackray’s 5 page letter on Seasonal Trends HERE