Parkiet: “The Halloween effect will help sustain global bull markets”
“It is scientifically proven that in the autumn-winter period return rates are significantly higher than in the summer. Therefore, it’s theoretically worth buying stocks now. Yet, there are some serious objections,” reports Parkiet. The article quotes Marta Walendzewicz, ARIA Fund’s Investment Analyst.
“WIG broad market index has recorded an increase of almost 30 percent from November 2016 until the end of April; and dropped significantly in May to only a few percent above the line. These data fit perfectly into the concept of an investment strategy called Halloween effect, described first by Sven Bouman and Ben Jacobsen. They found that all stock market sectors and industries perform better during winter months on as many as 36 out of the 37 markets examined. They also said that better results were achieved by selling shares at the end of April and buying them off at the end of October rather than keeping them in the portfolio throughout the period,” reports Parkiet.