Sunday, August 02, 2009

Wake me up when september ends

For those who is hoping to jump into the market, perhaps you can take a look at history. I posted this article on the seasonal effect of STI since 1985.

Based on historical data, average monthly returns for STI is pretty bad. But hey, the market is like a 1000 ml glass with 500 ml of water. It's half filled or half empty. It means either that you should start looking to re-balance your positions or you can start looking at some bargains for the things you've been eyeing for so long.

Of course, past data do not guarantee the future. Haha, I'm getting good at saying a lot without meaning anything :)


Derek said...

Hi LP,

I was reading Teh Hooi Ling's book "Show Me the Money" and she too mention that September is a sucky month for stocks. She did a research on the ideal months to invest in and surprising, October came up tops.


la papillion said...

Hi Derek,

Ya, I agree. I think what's surprising is because October is usually associated with bad returns e.g. black mon on 1987, great depression on oct 1929. However, those are very extreme cases. Most of the time, on average, the returns are pretty gd :)

I guess it's the kind of media reinforcement. If tv keeps showing planes crashing, the masses would also think that planes are not safe, even though the prob. of dying in a auto mobile accident is much higher.

Derek said...

True True, the power of media these days. So I guess you and I will start preparing ammo for the October hunt ya!


Createwealth8888 said...

Did you ever learn any lessons from the sleeping Hare? Never ever fall asleep in the Market unless you have decided to leave the Market forever. Ha ha. Just kidding.