FA Center: Sorry, stock investors: A hot summer market rally is just a mirage

Another Wall Street myth bites the dust. I’m referring to the notion that circulates every year around this time that U.S. stocks will enjoy a summer rally. Try as I might, I can’t find any statistical support for it.

The reason to focus on this now isn’t just because Memorial Day marks the ceremonial beginning of summer. It also illustrates how sloppy financial advisers and other investment experts are in throwing around clichés that have no basis in fact.

What defines “summer rally”? The definition I test in this column was proposed by the late Ralph Rotnem, who the Stock Traders Almanac credits with being one of the first to perceive a supposed summer rally.

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