From seasonal weakness to seasonal strength

A good place to start deciphering the share markets at present is the seasonal pattern in shares. Typically the period from May that we have just come through is the weakest period of the year. The September quarter has lived up to its reputation as being poor for shares with both global and Australian share prices down around 8%, the worst since the September quarter 2011. Worries about China, the emerging world, commodity prices, Greece and the Fed have clearly played a big role. However, October is known as a “bear killer” month, as it often sees market declines bottom ahead of seasonal strength into year-end and the new-year (see chart below). A further leg down in shares remains a risk in the weeks ahead. However, along with the more positive seasonal pattern in the months ahead there are fundamental reasons to see a resumption of the cyclical bull market. Click the (VIEW LINK) to read more on these fundamental reasons.


The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.