Using a purely historical perspective to preview 2010 one might conclude that the year is very likely to get off to a strong start as the first four months of the year have been positive 72% of the time going back to 1974. After several years of outlier markets (it has paid to be a contrarian in this market) and odd seasonal moves we might just be returning to the “sell in May” market. In other words, a more traditional low volatility investing environment is likely on the horizon:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.