Archive for June, 2012

This is Carly Simon?

or maybe Steven Tyler?

or a lion?

or the beast from the tv show Beauty and the Beast?

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Investment Strategy: Only Hold Stocks on the First Day of the Month – June

2011:
Definitely made money: 5
Made NO money: 6
Depends upon when bought/sold: 1

2012:
Definitely made money: 4
Made NO money: 1
Depends upon when bought/sold: 1

Starting in January 2011, I started tracking the trading strategy of being in stocks only on the first day of the each month, and if this method outperforms a “Buy and Hold” strategy.

Background: The S&P reported that if someone invested $10,000 in the S&P 500 on Dec. 31, 1999, and left the money there until Dec. 1, 2010, they would have just $8,209. HOWEVER, an investor who was in the market only on the first day of every month over the same time period [buying at the close on Dec. 31 and selling at the close of the first trading day in January] would have $13,816.

JUNE – Unless you happened to buy at the low on May 31, and sold at the high on June 1st, you would NOT have made any money.

May – Would have made money.

APRIL – Would have made money.

MARCH – Depends upon when bought/sold. If you bought at the close on Feb 29 and sold at the close of March 1st, you would have made some money.

FEB – Definitely would have made money.

JAN – Definitely would have made money.

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