Two Popular Stock Market Cycles

We all know that the market runs in cycles. 

Two most popular cycles are as follows:

1. The US Presidential Cycle (better known as the 4 year election cycle)
2. 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