On May 26th the Dow Jones Industrial Average (DJIA) will celebrate its 120th year. In honor of this feat, S&P Dow Jones Indices published a white paper containing a number of facts and figures around the Index. For example, the best trading day of the week for the DJIA is actually Saturday so maybe we should bring back Saturday trading. From 1887 to 1952 stocks were traded on the NYSE from 10:00am to noon.
And for all the 'sell in May' hype, at least for the DJIA Index, July and August are two of the three best performing months of the year. In fact, the summer rally tends to begin accelerating in June. Simply avoiding the month of September, the largest draw-down month, is maybe what investors should consider if they are true believers in the 'sell in May' mantra.
The entire white paper is an interesting and fact-filled read. The action over the last few days make it seem a possibility the nearly two year sideways trading pattern we are stuck in is coming to an end. If so, just maybe it won't be such a long hot summer and investors will be rewarded with average returns generally achieved by the market in the June, July and August months.
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