facebookDo you all believe in the December sell-down effect? Some investors believe it is good to buy shares in December, thoughts? - Seedly

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Bibiana

Bibiana

14 Jan 2020

Stocks

Do you all believe in the December sell-down effect? Some investors believe it is good to buy shares in December, thoughts?

Is this effect a myth? or is it backed-up by data? can those experienced investors here please shed some light on this supposed effect?

Discussion (13)

What are your thoughts?

Billy Ko

Billy Ko

14 Jan 2020

Financial Analyst at REPE Firm

Investors always love to find trends. Can you believe there's a almanac for stock traders book? But all in all, it's based on past trends with evidence to support - i.e. wanting to cash out to buy stuffs during boxing day / Christmas presents. Fund managers going on holiday, hence selling the funds that require monitoring. You could take it with a pinch of salt nonetheless, like how everyone has been saying for a year now that a recession is going to occur but once it occurs, they will go like "I told you so! / I forecasted this would happen!"

Best is to not wasting time on stuff that is out of your control.

December is the tax reporting and holiday period. Most traders I know from the US will take a break in December too. Volume will be lower during this period.

No nobody knows when the market is up and down. It is due to Mr market's temperament of the day.

If one could forecast, one would already be a billionaire and not be typing on this forum

Elijah Lee

Elijah Lee

23 Dec 2019

Independent Financial Advisor at Phillip Securities (Jurong East)

I don't try to time the market. Then I'll believe in "Sell in May and Go Away" as well.

However, th...

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