Year End Stock Market Trends: Time To Celebrate?

Year End Stock Market Trends: Time To Celebrate?

 

Just a quick post from me on current market conditions as we enter the Holiday season:

After shrugging off the US Ebola outbreak scare (see last week’s blog entry: Using Google Trends To Take Advantage Of Pullbacks: Ebola Case Study), the US equity markets have been quickly rising again.

year end stock market rally

 

Today, the markets are trading back near record high levels and are entering a historically strong period of the year. Investors tend to greet the holiday season with optimism, and that optimism tends to impact their investing outlook.

As a result, the November – January period is historically a very strong period for US equities:

seaonal trends

Source: Ibbotson, Investopedia

 

I am expecting a bit more volatility after the Thanksgiving holiday as investors reallocate their portfolios for tax purposes. Additionally, keep a close eye on the markets come January, as leveraged investors may wait until the start of a new year (and new tax year) to sell gains in their portfolios in anticipation of the Fed’s next move…

 

Thanks and have a great Thanksgiving week!

signature-john_rothe

 

 

 

Questions? Thoughts?

 

Feel free to leave a comment below or you can reach out to me privately here.

Thanks,

John Rothe

CEO/Portfolio Manager

Riverbend Investment Management

 

 

cover image: Billy Alexander 

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