Stock Market Seasonality - Part 1
· October marks the end of the seasonally unfavorable May-October period, often referred to as “Sell in May and Go Away.”
· The chart below shows how the Dow Jones Industrial Average compares to the average of the last 25 years.
· This seasonality pattern worked well this year for DJI, small-caps, and the equal-weight S&P 500, but not so much for the cap-weighted S&P 500 and the NASDAQ 100, which are dominated by several mega-caps, including the Magnificent 7 stocks.
