Exploiting seasonal performance of big income stocks

Fifty percent of self-managed super fund money is invested in just ten stocks, the largest ten stocks, and of those ten the four major banks and Telstra account for 57% of the market capitalisation of those top ten. But that shouldn’t surprise anyone because, in an environment of falling risk free yields, these are the five most recognised income stocks in the market and all offer fully franked yields and it is the focus on income that has produced a really rather remarkable seasonal performance from all these stocks. Marcus Today recently published the seasonal performance charts of all the banks and Telstra and, much as I abhor the way many analysts use past statistics as hollow predictions of the future, the seasonal performance of large income stocks has some remarkable depth and reliability. With perfect timing and assuming the seasonal phenomenon sustains, there are some opportunities to exploit the trends. View the full article here (VIEW LINK)