How to Beat the Seasonality of Stock Performance

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Dec. 19 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at the performance of seasonal stocks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

'tised season for seasonality.

Time for insight and action.

Let me show you what we're talking about.

There's a seasonality to the way stocks perform.

The team at stregis went to 1950 and found if you average the growth of all those years, you get a rise in december of 1.5% and another rise into january, call it about another 1.5%. we're right here and right on target.

This is exactly where we're supposed to be and if history repeats itself, we have another 2.5% points by staying strong through january.

It's not a perfectly straight line but pretty good.

We can just stay long in the market or do a little better and figure out which sectors are leading the market and there are two so far in the month of december that are leading very clearly, materials and industrials, both up 1.4%. which, by the way, is double the next best.

Technology is up .7%. it's where you want to be.

If we look at the charts they both look very good.

Here are the industrials.

Iyj the ticker, the i share for industrials.

That's a steady, fine-looking chart.

New all time highs along with the market.

Industrials, i.y.j. is the one sector to watch and the materials, i.y.m. is the ticker.

A different chart and struggled and finally starting to break out and look where we are now as you look at the chart.

You see that?

We've had back and forth for about a year and potentially is setting for a breakout and is the one most exciting.

This text has been automatically generated. It may not be 100% accurate.


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