The Jewish holiday of Rosh Hashanah begins at sundown today, 9/9/18. The
ole Wall Street adage is “Sell Rosh Hashanah, Buy Yom Kippur.” Yom Kippur
begins at sundown on Tuesday, 9/18/18. Thus, seasonality-wise, stock market
softness is expected over the next week or so.
Jewish folks reflect on their lives and actions during Rosh
Hashanah and seek atonement for their sins. It is not a time to be focused on
material possessions such as stocks so many Jews avoid the markets which typically
subtracts away from bullishness in equities.
Last year, stocks were in a melt-up so the adage went down
in flames. Not even a religious holiday could stop the wealthy from riding the bullish gravy train higher. Human greed rules. The Dow has fallen about -0.6% from Rosh Hashanah to Yom
Kippur, on average, over the last 47 years.
During the 2008 stock market crash, equities were bludgeoned
-21% during the Jewish holiday period. In reality, the period is a coin flip
but it is something fun to watch over the next seven trading days.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.