The Investment Scientist

Archive for October 2014

I asked my assistant to do an updated stock market seasonality study.

The data we used was the S&P 500 index from 1927 which we found in Nobel Prize winner Robert Shiller’s database.

We assumed that at the beginning of each year we invested $1 in the index, and we observed how the investment fluctuated over the year. Then we took the average over three different periods of time: the last 20 years, the last 50 years, and the last 86 years.

Here is the chart we got: Read the rest of this entry »


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Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.

Twitter: @mzhuang

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