Today Begins the Historic Summer Rally

Many investors are aware of the Santa Claus Rally, the historic effect that stocks have done well around Christmastime.

There’s a similar effect for the middle of the year, although it’s not quite as strong. I’ve crunched 120 years of the Dow’s history and found that the index has gained an average of 3.56% between today, June 29, and September 6.

Roughly speaking, that means that the Dow has historically made about half its gain for the entire year during a stretch that’s a little over two months.

I caution investors not to read too much into this data. I just think it’s interesting how investors have behaved during different parts of the year.

Posted by Eddy Elfenbein on June 29th, 2016 at 11:17 am

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