Page 43 - DIY Magazine June 2018

The chart illustrates the different nature of the two six- month periods:
1st May-31st October – Summer period: six-month return tends to be flat
1st November-30th April – Winter period: the market tends to rise.
The data supports the claim that the greater part of the market’s gains come in the Winter period.
Over the whole six-month Summer period the market doesn’t necessarily fall, but it does tend to be flat, and certainly the returns are less than in the Winter period.
However, it can be seen in the chart that the market is absolutely weak for the two-month period May to June. So, according to the data since 1984, if you do sell in May one time for coming back into the market would be the end of June.
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43 DIY Investor Magazine | Jun 2018