In every year since 2000, an investor who bought the small resources share price index on Christmas Eve would have had a chance to sell at a higher price...

John Robertson

PortfolioDirect

In every year since 2000, an investor who bought the small resources share price index on Christmas Eve would have had a chance to sell at a higher price before the following 14 January. In every year since 2000, except 2011, the index has closed higher on the last trading day of the year than on Christmas Eve. (The references to 2000 are simply due to not having tracked the data any earlier than this - not a breakdown of the trend.) There is always a chance the sequence will be broken but there is little doubt about a seasonal effect existing. Any investors paying attention over the holiday period should be wary about chasing unusually strong share prices. It would also be premature, based only on upward price movements over the coming two or three weeks, to draw conclusions about a change in market direction.


John Robertson
John Robertson
PortfolioDirect

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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