The Bottom Line
Investors with a time horizon of two months or less will want to take at least some money off the table following extraordinary gains in November and December (particularly in economically sensitive sectors and sectors that are ending their period of seasonal strength). Investors with a time horizon of more than two months should continue to hold positions, particularly if positions are in equity markets and sectors that benefit from favourable seasonal influences into May/August during a U.S. Pre-election year. More information on expectations for equity markets during a U.S. Pre-election year are offered below.
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