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Investment Strategies with seasonality!
Leveraging predictable market patterns for timely investment rotation
Generational Wealth Insights
May 25, 2024
In a world increasingly guided by predictive analytics and algorithmic precision, it seems paradoxical that a concept as traditional as seasonality could dominate modern investment strategies.
Yet, a comprehensive scientific study spanning over two centuries of market data reveals an astounding verdict: seasonal investment strategies outperform not only traditional methods like value and momentum investing but also newer, highly-touted techniques like cryptocurrency trading.
This extensive research, led by Guido Baltussen, Laurens Swinkels, and Pim van Vliet, delves into 68 markets across four asset classes, offering a profound insight into the enduring power of seasonal trends - a method often overshadowed by the allure of high-tech financial tools
Discover how a groundbreaking study spanning over two centuries reveals that timing the market with seasonal trends can dramatically outperform conventional investment methods, offering superior returns and lower risk.
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Embracing seasonality in investment strategies not only echoes the principles laid down by market veterans but also aligns with empirical research showing its effectiveness across various asset classes.
Legendary trader Larry Williams once remarked, "The secret of successful investing is to figure out the value of something – and then pay a lot less."
This philosophy underpins the essence of seasonal investment strategies, which capitalize on predictable, recurring patterns to secure investments at their most advantageous moments.
As in all financial instrument, never take a trade just based on seasonal patterns, warns Larry Williams, who instead uses them to confirm or strengthen signals given by charts and volume.