Equity Clock: Stock Market Outlook

January is usually a good month for the stock market as investors are full of positive anticipation for the year ahead. However, with the various Indexes near all-time highs, it might be prudent to adopt a cautious approach to investing this month and, indeed, this year. [more]

Market sell-offs, like the one we have just experienced, often provide exceptional stock-buying opportunities. In these circumstances, it is the prudent investor that takes advantage of the stock market’s traditional seasonality trends. [more]

We have updated our Seasonality Chart (presented at the end of this report) and made significant changes, including updating the beginning-and-end dates for the periods of seasonality strength, and adding a further ten industry sectors. We remain cautious towards the market and recommend defensive positions. Given the recent strong upward movements in stock prices, we would welcome over the summer months a lengthy consolidation period or a meaningful, but healthy, pull-back. [more]