…Utilizing the market’s historical seasonality trends can provide a useful framework for assessing and then altering the mix of one’s stock portfolio…[and the following two market sectors are “in season’ this September].
Seasonality refers to particular time-frames when stocks/sectors/indexes are subjected to, and influenced by, recurring tendencies that produce patterns that are apparent in the investment valuation process.
Seasonality Trends Chart
The seasonality trends chart is an ever-changing 14-year average of the indexes and sub-indexes that we track…[and the] chart below has been updated as of May 2020. It shows the periods of seasonal strength for 28 market segments. Each bar indicates a buy and a sell date based upon the optimal holding period for each market sector/index.
TABLE 1: Seasonality Trends Chart
Source: Compiled by eResearch, May 2020
Seasonal Trends for the Market Segments in September
The following table shows which indexes and sectors are “in season” during the month of September:
- the two dates in green under FROM are this month’s additions (Consumer Staples and Natural Gas sectors), and
- the eight in red under UNTIL are this month’s expiries (the Russell 2000, the U.S. Dollar Index, Energy, Real Estate, Bio-techs, Gas Utilities, Retail, and Gold)…
TABLE 1: Current Seasonal Positive Strengths for the Market Segments
Source: Equity Clock and eResearch
Conclusion[Given the above, it warrants a close look at stocks in the Consumer Staples and Natural Gas sectors this September to take advantage of such historic seasonality trends.]
Editor’s Note: The original article by Bob Weir has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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