Apparently, the world ends for stockmarkets in September a fact that will no doubt be picked up and repeated by our local finance news peanuts without giving any thought to what they are copying. So I thought I would fire up the old dodgy spreadsheet and see if there were any seasonal differences between the US and Australia at this time of the year. Surprisingly, there is….
As can be seen by the two charts above there is some seasonal variation between the two markets in terms of average returns. This raises the inevitable question of what relevance do these sorts of charts have and from my perspective the answer is none. They are interesting simply from a factual point of view but they make no real impact upon any trading decision I might make throughout the course of this month.
