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| Eric Marvin, CFP®, CRPC®, Financial Advisor |
As we approach the end of the year the market has traditionally shown a bias to the upside. This trend goes back several years and is often referred to as the “Seasonality Effect.” There is no one real answer as to why this tends to happen, but many people have developed theories. First, December has less trading days than a normal month. Second, the volatility index often bottoms during the middle of the month before it tends to reverse. Third, traders tend to take vacation around the holidays, thus there is less volume on the exchanges.
Remember, past performance is no guarantee of future results and these trends can reverse at any point in time. This is for informational purposes only and should not be construed as financial advice.
Eric M. Marvin
CFP® in Fort Myers, FL
JPT122111-2086
