Mark Hulbert: Why stock prices should be higher in six months

Halloween marks the beginning of one of the most seasonally favorable periods of the stock market calendar.

That should come as welcome news indeed to beleaguered investors, since the S&P 500 SPX, +1.86% has shed nearly 7% so far for the month of October.

I’m referring, of course, to the U.S. stock market’s famous six-months-on, six-months-off seasonal pattern that goes variously by the names of “The Halloween Indicator” and “Sell in May and Go Away.” On average over the last century, almost all of the stock market’s gains have been produced in the Halloween-through-May-Day period — the so-called “winter” months.

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