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Do some months have significantly different stock market returns than others? I am not so sure, but many investors belief that October will be the bad month for stock markets and January will be better with higher than average return.
Is it true that we can time the market base on calendar months like “Sell in May and go away “ ,buy in December for Santa Claus Rally “ and January Effect etc…which sometimes may refer to as “ Calendar Effect”.(link) October is a unique month. In the west, October is a transitional month, autumn sliding relentlessly towards winter. It also boasts the only holiday where people are encouraged to dress up, scare each other and extort candy with threats of mischief. October has a special place in finance, known as the October effect, and is one of the most feared months in the financial calendar. In this article...
