Summer party ?

Since 1928, the first 15 days of July have consistently been the best two-week trading period of the year for US equities, according to Scott Rubner, Goldman’s Global Markets Division Managing Director as reported by Bloomberg. While the reasons for this pattern are speculative, one possible explanation is that both retail and institutional investors increase their market activity before the holidays, leading to a strong seasonal trend ahead of the summer break. As long-term investors focusing on companies with undervalued earning power, we would of course welcome this trend without being dependant on it to repeat this year.