Halloween Effect - Sell In May and Go Away
Halloween’s around the corner, did mooers ever heard of the Halloween effect?
This is my way of celebrating the Halloween - by telling mooers the stock market anomaly. ![]()
The Halloween Effect is when, in theory, stocks do better from the end of October to the next May, it's a stock market anomaly closely tied to the old saying “Sell In May and Go Away” that’s been around long before the United States even existed.
There is evidence that this strategy does perform well over several years, but no one has offered a conclusive explanation for why it works.
Here are the monthly historical returns on the S&P 500 Index from 1928 to September 2020, according to Yardeni Research:
Add up the returns in months November to April, and you find a total of 5.2 percent. In contrast, the returns from the six months after May are a mere 2.4 percent. Interesing.
For long-term investors, you needn’t worry too much about it. Stick to your investing discipline, and if the market dips, you can consider it a treat – not a trick – to buy in at a lower cost.
Happy trading mooers!![]()
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Knulp : Oh halloween has always been my favorite holiday
Moomoo Lily : Amazing
Reverseeee : Thanks for sharing! Its marvelous that it does perform well but theres no actul explanation. Ill hold my stocks, any suggestions? Btw I like you guys share some basic knowledge and interesting things about stocks, which is so funny. Happy Halloween you all!
Meta MooOP Reverseeee: Yes, no one has been able to conclusively identify a reason for this seasonal anomaly. But historical stock returns suggest that the premise of the Halloween strategy has been mostly true throughout the last half-century. Anyway let's expect a green November!
Kittykiki : Actually, we have experienced a horrible movie this week: the stock market was ongoing nightmare!!! Totally red!!
Popular on moomoo : Horror Friday, did you guys set stop loss?
14133276 : I can't remove this gif from my head
OldNormanBates : I buy the pain
... RIDE THE WAVE. The WKHS Thrives You Over The Snow
70183095 : nah
Spartakus : candy candy eating
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