Page 43 - DIY INVESTOR MAGAZINE - NOVEMBER 2018
P. 43

 However, the solid performance of the market in December is only part of a wider trend, namely that from the end of October shares tend to be strong through to the end of the year.
This is a result of the Sell in May effect (aka Halloween effect), where equities are relatively strong over the six- month period November – April. So, the market does have a fair following wind at this time of the year, and then in December shares often become super-charged.
DIVIDENDS
While December has been a good month for capital gains, it’s the worst month for income investors with only five FTSE 100 companies paying interim or final dividend payments in the month.
SECTORS
The FTSE 350 sectors that have tended to be strong in December are: Electronic & Electrical Equipment, Construction & Materials, and Media; while the weak sectors are: Banks, General Retailers, and Fixed Line Telecommunications.
DIARY
Dates to watch this month are: 5th Dec ¬ FTSE index quarterly reviews announced, 7th Dec – US Nonfarm payroll report, 18th Dec – FOMC announcement
on interest rates, 20th Dec – MPC interest rate announcement, 21st Dec – Triple Witching. And note that the London Stock Exchange will close early at 12.30pm on 24th and is closed on the 25th/26th and 31st December.
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 43 DIY Investor Magazine | Dec 2018
























































































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