Stock Market Research Press Release

Have We Entered “The Best Six Months” for Canadian Investors?
New Research Finds Canadian Investors Should Hold Their Stocks Longer Than US Investors

TORONTO, ON – Canadian investors can achieve greater returns by holding their Canadian stocks six weeks longer than our American neighbors retain theirs, according to new market research from TheUpTrend.com

“We were interested in seeing if a best-six-months strategy of market timing worked in the Canadian market,” said Stephen Whiteside, TheUpTrend.com’s president. This strategy, first discovered by Jeffrey A. Hirsch, publisher of the Stock Trader's Almanac, found that the best time to buy and hold US stocks was from Nov. 1 to April 30 each year.

“After analyzing the TSE/TSX data for the past 22 years we were very pleased with the results,” Whiteside said.

In a 22-year period extending from Jan. 2, 1980 to Nov. 1, 2002, the TSE experienced a net gain of 4515.34 points to close at 6321.40.

Using Mr. Hirsch's best-six-month strategy – buying on Nov.1 each year and selling on April 30 the next – one’s net gains would have increased to 5890.67, an increase of 30.46% over simply buying and holding.

Investors who bought in the spring and sold in the fall were not treated as kindly. If you bought on April 30 each year and sold on Nov.1, you would have lost a total of 1439.19 points over the 22-year period.

“We wanted to take this research one step further to see if Nov. 1 to April 30 was the best timeframe for Canadians,” Whiteside said. “What we found was that Canadians could do better by holding six weeks longer.”

If you bought on Oct. 27 each year and sold on June 5 the next year, your net gain would have increased to 9483.89. This is an increase of 210% over simply buying and holding and a 61% increase over the original six-month strategy. Using this strategy would have been profitable in 17 of 22 years.

“To ensure that these results were not skewed by the final run-up of the bull market, we also looked at the results from 1980 to 1998,” said Mr. Whiteside.

Using Mr. Hirsch‘s best-six-months strategy resulted in a gain of 3904 points. When the extra six weeks were added, however, gains increased to 6213.22 TSE/TSX points over an 18-year period.

“The 59% increase over Mr. Hirsch’s original formula was in line with the 61% difference we found when including the bull market in its entirety,” Whiteside said.

For more information on this study visit: http://www.theuptrend.com/canadian-stocks.html

TheUpTrend.com, provides on-line Canadian Investors with daily trend analysis on over 1,100 Canadian and US stocks, Income Trusts, iShares and iUnits, as well as all of the major market indexes. For Long Term investors, we also provide weekly analysis on over 1200 Canadian Mutual Funds from 30 different fund families.

Disclaimer 

TheUpTrend.com is an information service for investors/traders and is not a recommendation nor offer to buy or sell securities. TheUpTrend.com is not a broker or investment adviser and is not acting in any way to influence the purchase of any security. TheUpTrend.com and its personnel may already have positions in equities presented. TheUpTrend.com, its officers, directors and employees shall not be liable for any damages, losses or costs of any type arising out of or in any way connected with your use of its products or services. Securities presented should be considered speculative with a high degree of volatility and risk. Before trading securities, you should consult with a qualified broker, investment adviser and other professionals. We make all trade decisions based solely on technical analysis and do NOT check company fundamentals, news, earnings or rumors.. Past performance is not indicative of future performance.

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