Here's How We'll Profit During the Best Time of Year for Stocks

I really love this time of year.

And no, not for the holidays; it's historically the best time of year for stocks.

In the investing world, this is known as seasonality.

Seasonality refers to periodic fluctuations in certain businesses (and thus their stock prices) that occur regularly over a specified period.



A few factors that cause seasonality are:

  • Consumer buying patterns
  • Weather
  • Tax loss harvesting



Data going back to 1950 shows the period between November and January delivers the best average S&P 500 returns. In fact, this period produces an average S&P 500 return of 1.4%.

That's over 10-times the average monthly return compared to June to October:



While seasonality is currently in our favor, I don't want to mislead you and say that markets always follow this pattern (they don't). But I have seen...

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