Subtitles section Play video Print subtitles Why Does the Halloween Strategy Work? While there is no definitive explanation for why the Halloween strategy has shown some success historically, several factors may contribute to this phenomenon: Seasonality: Historically, stock market returns have exhibited a seasonal pattern, with returns typically being stronger in the winter months and weaker in the summer months. This pattern may be due to various factors, such as investor psychology, holiday-related trading patterns, or changes in market sentiment. Summer Vacations: During the summer months, many institutional investors and traders take vacations, which can lead to lower trading volumes and less market activity. This reduced liquidity can make the market more volatile and susceptible to price swings, potentially leading to lower returns. Tax Considerations: In some countries, tax considerations may play a role in the Halloween strategy's effectiveness. An example could be Australia, where the fiscal year ends on June 30.
B2 halloween strategy market summer trading tax 3 Reasons Why Halloween Investing Strategy Work.Logical Explanations for the Halloween Effect 23 1 Shao Chieh Lo posted on 2023/11/05 More Share Save Report Video vocabulary