Alpha Power Investing NewsletterJune 4, 2018
Into the Mid-Term Year "Dead Zone"
Several of Alpha's strategies are designed to take advantage of the tendency for the stock market to produce better gains during one part of the year (November through April/May) than during the remaining months. With 2018 being a mid-term election year, we want to look specifically at the "Dead Zone" period extending from June 1 through October 31 during each mid-term election year to see if there are any notable historical tendencies.
The net result is a cumulative decline in value of -16.5%. In other words, an initial $1,000 invested only as described above would now be worth just $835. To put this performance into perspective, note that overall during the test period the price of the Dow Jones Industrial Average advanced over +49,800%.
A Closer Look at the Results
Some interesting figures to note:
At a minimum:
To read more about Alpha's strategies, please go to the Strategies and Performance page of our website at www.alphaim.net to read the brochures and fact sheets.
Disclosures and Disclaimers: Past performance is not a guarantee of future performance. The returns illustrated above are not the returns of any Alpha strategy, do not represent actual trading and do not include management fees or the cost of funds, trading, or other expenses. Indexes are not investment vehicles and persons cannot invest directly in an index. The illustrations are designed to quantify the effect of certain time periods on the Dow Jones Industrial Average. The data used to construct the illustrations was obtained from third-party sources. While Alpha believes the data to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information.
Alpha Investment Management, Inc. is a SEC registered investment advisor. Such registration does not imply a certain skill or training and no inference to the contrary should be made. The information and opinions expressed in this document are for informational purposes only. Any recommendation or opinion made in this document may not be suitable for all investors. The information contained herein does not constitute and should not be construed as investment advice, an offering of investment advisory services, or an offer to sell or a solicitation to buy any security.
© 2018 Alpha Investment Management, Inc.