Political stability creates a solid back drop for a decent 2020. The US Fed is accomodative while weak earnings and high valuations remain.
There are several market tendencies or historical biases that we highlight throughout the year. One historical tendency worth noting at this time of year is the “January Effect.” The “January Effect” refers to the tendency of small cap stocks (as a group) to outperform their large cap counterparts early in the calendar year.
Markets are up strongly since we turned bullish. We expect that momentum to continue after a mild pullback. Overbought signals are here.
November is generally a very good month for US stocks. However, in years preceeding US Presidential elections, November has not always shown a strong performance. This year, options expiration week comes early. Our calendar shows the dates investors need to watch.
Oil prices usually enter a weak period starting in September. Is it playable? Seasonality holds true this year so far. Trades in defensive sectors doing well so far.
The weakest 6 months are here for the S&P 500 and Dow Jones Industrials. The NASDAQ ends its best six months in June. Ideas for repositioning your portfolios are included.