Invest by calendar? Stock market seasonalities

While empirical research in the past has been able to identify seasonalities in the capital market, we show that such calendar effects have almost disappeared.

While there is a great deal of nervousness in the financial markets at the moment and sometimes we can read about price caprioles of historic proportions, the start to the stock year was very promising. At the end of the first month on the stock exchange, the DAX recorded a 2 % gain. All as before, January is generally regarded as a strong month for the stock market. And what will happen in the course of the year seems to be a foregone conclusion: "Sell in May and go away, but remember to come back in September". This is the stock market wisdom that is often used, especially when the stock markets are in the doldrums in spring and no solid reason for the price weakness can be found. The knowledgeable investor knows that as a stock market player you should be back in early autumn; after all, the annual "year-end rally" should not be missed.

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