The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
A twenty-year look at the average gains and losses on a monthly basis shows some interesting standout observations. 1 March is the seasonal beginning of market gains, which runs until 1 May. The seasonal average chart confirms the “sell in May and go away” view.
Everyone remembers October for the crash, whereas often it is one of the better months for index gains. This is only followed by December, which is often referred to as the Santa rally. But a keen observer would see retracement before the rally as an opportunity to enter the market at lower prices.