How To Invest In The 4th Quarter

October 07, 2013   |   October 2013 Bond Updates
As we head in to the fourth quarter of the year, the government is currently shut down and the debt ceiling deadline is just two weeks away. There is no question that ?black swan? events or wars can have an immediate impact on the financial markets and are often not predictable in advance. Technical analysts look at historical tendencies, key price levels, and technical studies along with chart patterns to plan a strategy. In this lesson, I will take a look at some of the longer-term technical readings for the key markets, as well as the quarterly pivot analysis, to determine an outlook for stocks, bonds, and other key markets as we head into the last quarter of the year. For the past 50 years, the S&P has been up 0.60% in October with 38 up years and 25 down years. The month of November was even better as it has an average gain of 1.33% with almost twice as many positive years as negative ones. On an average basis, December was the best month of the quarter, up 1.61%. Even more impressive was that the S&P was up 48 of those years and down just 15 years. In a column last year Mark Hulbert commented that ?since 1896, we find that the average Dow gain in the fourth quarter is a gain of 2.7% versus a 1.6% average for the other three quarters.? Of course, October has a reputation as a tough month for the stock market that goes back to the crash of 1907 that was followed by the stock market bubble in October 1929. There were other bad years, the most notable being in 1987. The major averages also made their pre-financial crisis highs in October 2007.

View more at: http://www.forbes.com/sites/tomaspray/2013/10/05/how-to-invest-in-the-4th-quarter/
 
Related News
Home| About us | Contact us http://www.bondupdatesdailynews.com/