Dear Investor, A recurring phenomenon is said to take place in the stock market every year: the Santa Claus rally, a.k.a. the year-end rally. It is held that stock prices typically rise particularly strongly just before the turn of the…
Article in German Dear Investor, You are probably aware of the influence US elections have on the stock market. After Donald Trump was elected president, a particularly strong rally in stock prices ensued. Contrary to what many market participants seem…
Dear Investor, The Japanese stock market is quite unique: it would need to rally by approximately 80% to reach its former historical peak. What’s more, said peak was attained on the final trading day of 1989, more than 25 years…
Dear Investor, Years ending in 7, such as the current year 2017, have a bad reputation among many stock market participants. Large price declines tend to occur quite frequently in these years. Just think of 1987, the year in which…
Dear Investor, The prospect of steep market declines worries investors – and the month of October has a particularly bad reputation in this respect. Although the month of October delivers an acceptable performance in seasonal terms if one disregards outliers…
Dear Investor, Many market participants believe simple phenomena in the stock market are purely random events and cannot recur consistently. Indeed, there is probably no stock market rule that will remain valid forever. However, there continue to be stock market…
Dear Investor, You have probably noticed it already: stock market volatility has recently all but disappeared. This raises an important question for every investor: Has the market established a permanent plateau of low volatility, or is the current period of…
Dear Investor, Every investor makes trading decisions based on what happened in the past – there is no other way. What interests us is the future though. After all, what happens in the future ultimately determines investment success. But will…
Dear Investor, You are surely aware of the saying “sell in May and go away”. It is one of the best-known and oldest stock market truisms. And the saying is justified. In my article “Sell in May and Go Away…
Dear Investor, The months of September and October are widely known to represent a seasonally particularly weak time of the year. Indeed, at no other time of the year is the S&P 500 Index falling as quickly as in the…
