Cycles  |  DEC 2002

The Stock Market, The Calendar, And You by Jay Kaeppel

The Stock Market, The Calendar, And You by Jay Kaeppel What’s more important — what you buy or when you buy it? Seasonality in the market has long been a welldocumented phenomenon. A detailed look at the stock market will lead you to conclude that there are certain times when it is more advantageous to be in the stock market than other times. Seasonality offers a viable approach to investing and trading, and in this article I want to focus on this aspect. I will illustrate how combining four basic seasonal tendencies can maximize returns. One advantage of employing a seasonal system is that it will leave you in cash and earning interest risk-free much of the time, rather than leaving you fully exposed in the stock market. In addition, you will only be invested on those days with a historical tendency to show advances.

by Jay Kaeppel