What It Means, How It Works
The Halloween strategy is a market timing strategy. It is based on the hypothesis that stocks perform better from Oct. 31 (Halloween) to May 1 than the rest of the year. The Halloween strategy posits that it is prudent to buy stocks in November, hold them through the winter months, and sell them in April while investing in other asset classes from May through October.
Key Takeaways
- The Halloween strategy suggests that investors should be fully invested in stocks from November through April, and out of stocks from May through October.
- Variations of this strategy and its accompanying axioms have been around for more than a century.
- There is evidence that this strategy does perform well over several years, but no one has offered a…
