Two Popular Stock Market Cycles
We all know that the market runs in cycles.
Two most popular cycles are as follows:
- The US Presidential Cycle (better known as the 4 year election cycle)
- Seasonal Cycle or a 1 Year Cycle
The US Presidential Cycle
ACCORDING TO THE CYCLE:
- The best time they say to buy stocks is - a year before an election
- Stock equity rises in the first year (also known as the President’s honeymoon year)
- Market rallies and then fall in the fourth year of the presidential term,
- The cycle repeats again with the next presidential election.
Seasonal Cycle or a 1 year cycle
The usual belief of the seasonal cycle is that we often see a year-end rally which continues till January ( also known as the Santa Claus rally)
The follows a correction till May
As they say- Sell in May and go away, come away in Saint Patricks day ( i.e. September) .
Then we witness the Summer Lull
October gives us the Fearful Autumn Storms.
Before the investors get ready again for the Year-End |Rally
That completes the market cycle.
Trade safe.
Stay safe
Sanchaita
"The most important investment you can make is educating yourself."- Warren Buffett
IF YOU WOULD LIKE TO LEARN HOW TO TRADE THE FOREX MARKET OR ENHANCE YOUR TRADING JOURNEY, THEN THIS IS A GOOD PLACE TO START.
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Author
Sanchaita B Sharma
Financial Trader
I trade the market online while creating the work-home balance lifestyle . I help success-driven budding traders do the same via my ongoing support inside our forexdiva community. Music, Nature and Sports inspires me. ______________________ I placed my first trade in 2010. Largely self taught but qualified later with Society Of Technical Analyst UK & recognised as a "Certified Financial Technician" (CFTe) by the "The International Federation Of Technical Analyst," USA
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