Within my recent monthly newsletter commentaries I mentioned that October is historically the worst month for stock market returns. In fact there have been numerous studies that examined how the stock market typically performs each month. Or in other words they examined the seasonality of stock market returns.
However for DIY investors, particularly those investing in funds for the long term, this is of limited use. That's because you should only invest money if you don't need access to it for at least 5 years.
Therefore what the stock market does over 5 years is far more important than what happens in any given month. But what I wanted to explore is whether there is a better time to invest, in any given year, to increase your chances of boosting returns. It's a question that until now has not been answered.
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