This amazing chart could change how you think about investing
November 6, 2011 by david
From The Big Picture:
Several readers have inquired about the seasonality factor when it comes to equities…
Let’s take a quick look at the history of the seasonal advantages. “The Best Six Months of the Year” was first described by Yale Hirsch in Stock Traders Almanac decades ago. The historical chart below via Investech Research reveals the surprising degree of seasonality for investors, going back 50 years.
Here are the specifics of seasonality:
Imagine we start with two $10,000 accounts, and use them to make investments in an S&P 500 Index fund. One account invests in one six-month period, the other invests in the remaining six-month period. Account A is invested from November 1st through April 30th each year, while Account B is invested from May 1st through October 31st.
Here are the numbers:
• Account A portfolio grew from $10,000 to…