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What are the odds of a summer rally?

Bill Radke May 31, 2010

Traditionally, stocks tend to heat up during the summertime, according to Fortune Magazine’s Allan Sloan. Sloan says the summer has been “a lock” for stocks over the last 100 years, with June breaking even and July and August going up more than 60 percent of the time. Giving the notion of a summer rally a year-long perspective, the theory is even stronger, with a particular historic drop in September and an uptick in markets 52-63 percent of the time during summer months.

For this year’s summer season, Sloan advises investors to stay away from U.S. Treasury Bonds. “I think the interest rates are going to go up. The rates are crazy low, which means that the prices of the bonds are crazy high.”

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