Post by: Valley Financial Group & Billy Wolfe Jr.
Memorial Day marks the opportunity to remember and thank the heroes that served our country and it’s the unofficial beginning of Summer. Baseball is being played (Tough to be a Phillies fan at the moment), barbecues are being held, The Fresh Prince(that’s Will Smith for you younger folks) Song Summertime is being played by the local radio stations and the Jersey Shore is the busiest it will be all year.
However, the weekend is the start of much more than just summer fun. When looking at seasonal stock trends, Memorial Day Weekend is also the unofficial beginning of the financial Summer. Of course, these seasonal trends are only based on past patterns and should not be taken as the definitive truth, and should only be taken into account as one small factor of your financial decision making. With that being said, share prices historically have been known to fall during the Summer months. With many investors, from fund managers to affluent private investors, taking several weeks or months off on vacation during this time, there is a high probability of there being far fewer investors in the playing field. Sheer volume of the money in play is down, and one big trade could significantly push a stock in one direction or the other. Just like you know the ocean has high and low tides, you should expect that your portfolio and the market will have the same during the summer months and beyond.
So enjoy your summer and make memories with your family and friends. Thank you to the women and men who have served and died for our country. Happy Memorial Day from Valley Financial Group!