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Sell In May And Go Away
Sell in May and go away is an investment strategy for stocks based on a theory (sometimes known as the Halloween indicator) that the period from November to April inclusive has significantly stronger stock market growth on average than the other months. In such strategies, stock holdings are sold or minimized at about the start of May and the proceeds held in cash (e.g. a money market fund); stocks are bought again in the autumn, typically around Halloween. "Sell in May" can be characterized as the belief that it is better to avoid holding stock during the summer period. Though this seasonality is often mentioned informally, it has largely been ignored in academic circles. Analysis by Bouman and Jacobsen (2002) shows that the effect has indeed occurred in 36 out of 37 countries examined, and since the 17th century (1694) in the United Kingdom. The effect is strongest in Europe. Causes Data show that stock market returns in many countries during the May–October period are system ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock Market
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange as well as stock that is only traded privately, such as shares of private companies that are sold to investors through equity crowdfunding platforms. Investments are usually made with an investment strategy in mind. Size of the market The total market capitalization of all publicly traded stocks worldwide rose from US$2.5 trillion in 1980 to US$111 trillion by the end of 2023. , there are 60 stock exchanges in the world. Of these, there are 16 exchanges with a market capitalization of $1 trillion or more, and they account for 87% of global market capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are all in North America, Europe, or Asia. By country, the largest stock markets as of January 2022 are in t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Money Market Fund
A money market fund (also called a money market mutual fund) is an open-end mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of dividends. Although they are not insured against loss, actual losses have been quite rare in practice. Regulated in the United States under the Investment Company Act of 1940, and in Europe under Regulation 2017/1131, money market funds are important providers of liquidity to financial intermediaries. Explanation Money market funds seek to limit exposure to losses due to credit, market, and liquidity risks. Money market funds in the United States are regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. Rule 2a-7 of the act restricts the quality, maturity and diversity of investments by money ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Halloween
Halloween, or Hallowe'en (less commonly known as Allhalloween, All Hallows' Eve, or All Saints' Eve), is a celebration geography of Halloween, observed in many countries on 31 October, the eve of the Western Christianity, Western Christian feast of All Saints' Day, All Hallows' Day. It is at the beginning of the observance of Allhallowtide, the time in the Christian liturgical year dedicated to remembering the dead, including saints (hallows), Christian martyr, martyrs, and all the faithful departed. In popular culture, Halloween has become a celebration of Horror fiction, horror and is associated with the macabre and the supernatural. One theory holds that many Halloween traditions were influenced by Celts, Celtic harvest festivals, particularly the Gaels, Gaelic festival Samhain, which are believed to have Paganism, pagan roots. Some theories go further and suggest that Samhain may have been Christianization, Christianized as All Hallows' Day, along with its eve, by the Ear ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Seasonality
In time series data, seasonality refers to the trends that occur at specific regular intervals less than a year, such as weekly, monthly, or quarterly. Seasonality may be caused by various factors, such as weather, vacation, and holidays and consists of periodic, repetitive, and generally regular and predictable patterns in the levels of a time series. Seasonal fluctuations in a time series can be contrasted with cyclical patterns. The latter occur when the data exhibits rises and falls that are not of a fixed period. Such non-seasonal fluctuations are usually due to economic conditions and are often related to the "business cycle"; their period usually extends beyond a single year, and the fluctuations are usually of at least two years. Organisations facing seasonal variations, such as ice-cream vendors, are often interested in knowing their performance relative to the normal seasonal variation. Seasonal variations in the labour market can be attributed to the entrance of school ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotland, Wales and Northern Ireland. The UK includes the island of Great Britain, the north-eastern part of the island of Ireland, and most of List of islands of the United Kingdom, the smaller islands within the British Isles, covering . Northern Ireland shares Republic of Ireland–United Kingdom border, a land border with the Republic of Ireland; otherwise, the UK is surrounded by the Atlantic Ocean, the North Sea, the English Channel, the Celtic Sea and the Irish Sea. It maintains sovereignty over the British Overseas Territories, which are located across various oceans and seas globally. The UK had an estimated population of over 68.2 million people in 2023. The capital and largest city of both England and the UK is London. The cities o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interest Rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed. The annual interest rate is the rate over a period of one year. Other interest rates apply over different periods, such as a month or a day, but they are usually annualized. The interest rate has been characterized as "an index of the preference . . . for a dollar of present ncomeover a dollar of future income". The borrower wants, or needs, to have money sooner, and is willing to pay a fee—the interest rate—for that privilege. Influencing factors Interest rates vary according to: * the government's directives to the central bank to accomplish the government's goals * the currency of the principal sum lent or borrowed * the term to m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Efficient-market Hypothesis
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. Because the EMH is formulated in terms of risk adjustment, it only makes testable predictions when coupled with a particular model of risk. As a result, research in financial economics since at least the 1990s has focused on market anomalies, that is, deviations from specific models of risk. The idea that financial market returns are difficult to predict goes back to Bachelier, Mandelbrot, and Samuelson, but is closely associated with Eugene Fama, in part due to his influential 1970 review of the theoretical and empirical research. The EMH provides the basic logic for modern risk-based theories of asset prices, and frameworks such as consumption-based asset pricing and int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk-free Interest Rate
The risk-free rate of return, usually shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations. Since the risk-free rate can be obtained with no risk, any other investment having some risk will have to have a higher rate of return in order to induce any investors to hold it. In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield to maturity on a risk-free bond issued by a government of the same currency whose risks of default are so low as to be negligible. For example, the rate of return on zero-coupon Treasury bonds (T-bills) is sometimes seen as the risk-free rate of return in US dollars. Theoretical measurement As stated by Malcolm Kemp in chapter five of his book ''Market Consistency: Model Calibration in Imperfect Markets'', the risk-free rate means different things to different pe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Timing
Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements (market trends). The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis. This is an investment strategy based on the outlook for an aggregate market rather than for a particular financial asset. The efficient-market hypothesis is an assumption that asset prices reflect all available information, meaning that it is theoretically impossible to systematically "beat the market." Approaches Market timing can cause poor performance. After fees, the average "trend follower" does not show skills or abilities compared to benchmarks. "Trend Tracker" reported returns are distorted by survivor bias, selection bias, and fill bias. At the Federal Reserve Bank of St. Louis, YiLi Chien, Senior Economist wrote about return-chasing behavior. The average equity mutual fund ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Calendar Effect
A calendar effect (or calendar anomaly) is the difference in behavior of a system that is related to the calendar such as the day of the week, time of the month, time of the year, time within the U.S. presidential cycle, or decade within the century. It is most often used in a financial context to describe a market anomaly; traders may use market timing to profit from moves in stock prices based on the calendar. Examples Stock market * Sell in May * January effect * January barometer * Mark Twain effect * The Congressional Effect * Santa Claus rally * Super Bowl indicator * United States presidential election cycle * Weekend effect: Over the very long run, on average, weekend returns in US stock prices have tended to be negative. * Midweek effect: In the US, stock returns from between the Monday close and the Wednesday close have tended to grow at a near-constant rate since the 1880s. Other * Grand supercycle * Kondratiev wave * July effect - risk of medical errors and surgical c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
July Effect
The July effect, sometimes referred to as the July phenomenon, is a perceived but scientifically unfounded increase in the risk of medical errors and surgical complications that occurs in association with the time of year in which United States medical school graduates begin residencies. A similar period in the United Kingdom is known as the killing season or, more specifically, Black Wednesday, referring to the first Wednesday in August when postgraduate trainees commence their rotations. In reality, this phenomenon has not been proven in the scientific literature. In fact, large-scale meta analysis, which has aggregated over 110 studies on this topic, has shown no evidence of a July effect on mortality, morbidity, or readmission. United States A '' Journal of General Internal Medicine'' study, published in 2010, investigated medical errors from 1979 to 2006 in United States hospitals and found that medication errors increased 10% during the month of July at teaching hospitals, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
