Six-Month Strategy with MACD

[November is the start of the strong six-month period of the year. The Almanac has covered some ways to exploit this effect. The following is an extract from the 2013 edition of the Almanac.] We have already looked at the … Continue reading

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Monthly share momentum

Do shares exhibit a momentum effect from one month to the next? If we selected the 10 best performing FTSE 100 shares in one month and created an equally-weighted portfolio of those shares to hold for the following month, would … Continue reading

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Information effects and stock returns

Does an increase in newsflow on a stock anticipate increased returns? In today’s computerised world it is easy to monitor the amount of newsflow on particular stocks. It is also possible, using tools like Google Trends, to monitor active interest … Continue reading

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The January Effect(s)

It’s January, so let’s talk about the January Effect. But which January Effect would that be? We’ve come across three different uses of the term. A quick overview follows. 1. Small-caps out-perform large caps in January The most common use … Continue reading

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Six month effect – everywhere and always

A paper published this month by Ben Jacobsen and Cherry Yi Zhang gives the results of a study that crunched the numbers on all available data for 108 stock markets to see how widespread the six month effect (aka Sell … Continue reading

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The Stock Market in September

September is often not a good month for the stock market. Since 1990 the average return of the FTSE All-Share Index in September has been -1.2%. For some time this record made September the worst month of the year for … Continue reading

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The Stock Market in August

The UK equity market has displayed a rather odd behavior in August since 2011: alternating mildly positive returns for the month in even years, with large negative returns in odd years. However, that pattern broke down last year, in 2017, … Continue reading

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The Stock Market in July

Since 1970 the FTSE All-Share Index has seen an average return of 0.8% in July, with 54% of years seeing positive returns in this month. This makes July the fifth strongest month of the year for shares. As can be … Continue reading

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The Stock Market in June

A quick glance at the accompanying chart shows that June is not usually a good month for equities. The chart shows the month returns for June of the FTSE All-Share Index from 1984; one can easily see the market falls … Continue reading

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The Stock Market in May

It’s that time of the year again when stock market lore advises investors to get out of the market and, effectively, go on holiday for six months. And, indeed, Sell in May has been good advice over certain periods, for … Continue reading

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