Month Enable visual effect

I am reposting this February. I had done some research on the impact of the month, on the other hand, are:

in 1932, because most of the S & P 500 's capital gain has come for seven days on a monthly basis, in particular witnessed a — the first three trading days and the last four days of each month.This corresponds to approximately one third of the total trading days of the month for the remaining period of their stock market actually lost money.

These numbers: 1932 from the beginning of the S & P 500 has gained almost leaderboard will be%, which is approximately 6.5% annualized.Investment in only the last four days, and the first of each month, more than three days of the date on which the returned to 63,000% (the cost of trading in each direction)., which is the Annualized 8,6%. [1] [2] However, if you consider that it is really only 32% of the time, true annualized has more than 28%.

At the end of the Month — other 68% of the time — has led to the combined loss in close proximity to 78%.

I would like to add some important observations. First of all, I am not offered this advice to trading than. I am merely shows that the market has historically been the outsized gains on a monthly basis on the turn.Remember that the placing on the market of trading and ran out of expensive, and these results do not include taxes or fees.

Secondly, this only applies to dividends, capital gains are not a very large part of the market. [1] [2] the total amount of the return is due to the increase in the dividends, and if you have only one-third of the time, you are going to return to lose.

Having said that, here is a chart showing what month, on the other hand, investments in the display. S & P 500 is a red line. blue line shall within seven days, and the remaining months of the date on which it is a black line.

This is the time to take a look at the average daily gains.

Why the market has shown this performance?, it is difficult to say. One idea is that we've seen in the figure, which is simply a random action print. If splice and dice long enough information, you are bound to find some discrepancies.

My hunch is, however, that is something that the months turn. perhaps it is becoming the new money or perhaps a positive business News is the more likely you are to be made public.

However, as effective as historical information is, in my opinion, the effect is too short to serve as a basis for all of the strategy.

Posted by Eddy on day 1.November 12, 2010 at 2: 39 pm