Along with annual seasonality, the four-year cycle is one of the most important cycles on the U.S. stock market. This cycle is also called the election cycle because it is related to the election of the U.S. president.
I'm sure many of you are familiar with the popular market adage, "Sell in May and Go Away". It's a catchy saying that has been around for decades. The idea behind it is that stock market returns tend to be weaker during the summer months, from May to October.
The "turn of the month" effect has frequently been studied in relation to the U.S. stock markets. It shows that stocks tend to rise more around the turn of the month than around the middle of the month.
Easter is a time of celebration for millions of people around the world. Some prepare for this time over a 40-day period of reflection in the run up to Easter known as Lent, a time of fasting or abstinence from certain foods or activities as a form of spiritual discipline and growth.
Event Studies provide a completely new way to improve your investment strategies.
In 2011, the Journal of Finance, the most influential academic financial journal at the time, published an award-winning study that examined the behavior of U.S. stock prices prior to FED meetings.
Have you ever wondered how stock or commodity prices will behave when futures contracts expire, and when labor market or inflation numbers are published, or when the Fed meets for its FOMC meeting?
There are a number of horror stories accompanying the markets these days: surging inflation, decelerating growth and energy price hikes. Nevertheless, there is one more spine-tingling event coming up on October 31: Halloween!
Article in German Dear Investor, Eight times a year, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve (FED) meets to discuss and decide on monetary policy, and the level of key interest rates. In view of the…
Even years after a U.S. presidential election, markets are influenced by where they stand in the four-year election cycle, with historical data showing the midterm year as the weakest phase for equities compared to election, pre-election, and post-election years, though selective opportunities can still emerge in specific sectors, stocks, or commodities.
Article in German Dear Investor, Eight times every year, the Federal Open Market Committee (FOMC) of the Federal Reserve holds its regular monetary policy meeting. Market participants are awaiting the outcome of this meeting with bated breath, as it determines…
