The Little Book of Stock Market Cycles: How to Take Advantage of Time-Proven Market Patterns

Introduction

There is no magic formula to make trading or investing easy. Nothing can replace research, experience, and a healthy dose of luck. There is, however, a methodology investors can employ to mitigate losses and enhance returns. Nineteenth century philosopher George Santayana once pronounced that “Those who cannot remember the past are condemned to repeat it.”

This is the cornerstone of my research for the Stock Trader’s Almanac, which was founded by my father Yale Hirsch in 1966. By analyzing and studying the markets from a historical perspective, modern-day market action and events can be put into historical context. Whether you are a short-term trader or a longer term investor, being aware of historical and seasonal patterns and tendencies is helpful and valuable.

The Little Book of Stock Market Cycles is an amalgamation of the most effective indicators, patterns, and seasonalities that have been painstakingly researched and vetted over the nearly 50-year history of the Stock Trader’s Almanac. Those who study market history are bound to profit from it!

To be a successful trader or investor, you must understand how the market behaves under normal conditions. Whether it is in a secular bull market or a secular bear market, Wall Street moves to a predictable cadence governed by the passage of time. Recurring events such as the presidential election every four years, end-of-quarter portfolio rebalancing, options and futures expirations, tax deadlines, and holidays have ...