What are the odds of a summer rally?
Share Now on:
What are the odds of a summer rally?
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.”
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
