From Nasdaq:



This article discusses the seasonality of stock market returns and popular trading strategies based on seasonal trends. The data presented shows that while there are some common ideas such as the January Effect, January Barometer, Sell in May and Go Away, and the Santa Claus Rally, the actual returns don’t always support these theories. For example, the January Effect doesn’t show a significant increase in stock prices, and positive Januaries don’t always predict positive full years. Similarly, the Sell in May and Go Away strategy doesn’t have strong statistical evidence to support it. The Santa Claus Rally also doesn’t always hold true, with evidence of negative returns in December. The article also briefly discusses volatility trends, which seem to support the idea of October being a scary month. Overall, the data challenges many commonly believed seasonal stock market trends and trading strategies.



Original: Holiday Season Special | Nasdaq