Timing the Market with Seasonality – StockScreening101.com

Salient to Investors:

From November 1957 to October 2007, the Best 6 Months strategy (sell in May and come back in November) gained 38 times, lost 12 times, for an average annual gain of 7% versus the worst 6 months of the year which lost 18 times for a less than 1% average annual gain. Earning 1% in a 6-month CD added 1% extra per year.

The S&P 500 earned an average annual gain of 8.6% for the 50 year period beginning in November 1957 .

The biggest problem with any timing system based on stock market cycles is being out of the market during a bull rally, which kills performance.

Read the full article at http://www.stockscreening101.com/stock-market-cycles-seasonal.html