The History behind ‘Halloween Strategy’: (30/10/2024)
The Halloween Strategy is the approach that stocks perform better between October to May, and whereby people invest in equities at the start of the 6 month period, and sell them just before the Summer months.
Many believe that this strategy was adopted many centuries ago, when the upper class in London, would flee to their countryside estates during the summer months, and disregard their portfolios and businesses until they came back in September.
In the 16th century, the adage “sell in May and go away” was regularly used in British newspapers, and it really came to prominence in Wall Street in the late 1900s, which seen books and studies published thoroughly examining the concept.
Whilst the strategy is still quite a common approach today, it is always interesting to get an idea of where the origins of Investment Strategy’s come from, and if indeed, their concepts are still valid in the present day.
Halloween Strategy – Overview, How It Works, & Calendar Anomalies | Wall Street Oasis