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Re: [TSP_Strategy] Will Stocks Rise thru Mid April?

Re: [TSP_Strategy] Will Stocks Rise thru Mid April?

 

Hi Sarah
I'm new to the group.  Could you catch me up on where we should be now.  

Thanks 



On Monday, March 30, 2015 5:21 PM, "sarah_oz@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com> wrote:


 

Opinion: The curious reason why stocks may rise until Tax Day

Published: Mar 27, 2015 5:41 p.m. ET

The theory, for which there's statistical support, is that the government has a vested interest in making sure there is sufficient liquidity
CHAPEL HILL, N.C. (MarketWatch) — Stock market bulls have a most unlikely ally for the next couple of weeks: the IRS.
You read that right. Believe it or not, the stock market historically has performed at a well-above-average rate in the first half of April, and some advisers think we should be thanking the Internal Revenue Service.
One is Dennis Slothower, who publishes a number of investment services I monitor, including "On the Money" and "Stealth Stocks." Several years ago, he mentioned this possible early-April IRS effect, pointing out to his clients that "the government has a vested interest in making sure there is plenty of liquidity in the marketplace for those needing to pay what is shortly due Uncle Sam."
That means the government will do whatever it can to make "sure the [stock] market holds together as best it can going into Tax Day."
Unlike many of the alleged patterns that the 200 advisers I monitor claim to detect in the equity market's largely random gyrations, this one enjoys statistical support. Consider the experience of the Dow Jones Industrial Average DJIA, +1.49% since 1955, which is when April 15 became the date on which personal income taxes are due.
Since then, the Dow's average gain over the two weeks prior to Tax Day has been a gain of 1.22%. The average advance over the first two weeks of all 12 months is 0.3%, or one-fourth as much.
Of course, it's one thing to document a statistical regularity, and quite another to attribute it to the IRS. Yet it remains a likely culprit; I couldn't find support for the other possible explanations I could think of. Here are two that I analyzed:
  • The Halloween Indicator. April is the last month of the seasonally favorable period that begins on Halloween and lasts until the subsequent May Day. But that can't explain strength in the first half of April, since the average first-half gain during the six months between Halloween and May Day has been 0.55%, which — though better than the 0.3% across the first half of all 12 months of the calendar — is still far less than the 1.22% average for the first half of April.
  • Stock market strength the previous calendar year. This hypothesis traces to the plausible notion that stronger markets lead to greater capital gains, which in turn leads to more taxes the subsequent April 15. But it turns out that there is no statistically significant correlation between the stock market's performance in a given calendar year and the market's return over the two weeks prior to the subsequent Tax Day.
Note carefully that the market's upward bias in the first two weeks of April may not be enough to overcome round-trip transaction costs on a short-term trade. But that bias may nevertheless be enough to convince you to give the market the benefit of the doubt at least until Tax Day.
I bet you never imagined you'd be thankful for the IRS, did you?



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Posted by: russ bacon <reb5150@sbcglobal.net>
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April TSP S fund.jpg

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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[TSP_Strategy] Re: Will Stocks Rise thru Mid April?

[TSP_Strategy] Re: Will Stocks Rise thru Mid April?

 

Hulbert points to an interesting correlation and the theory behind it -- IRS want to boost economy at the end of tax season.  If there is anything to it rather than look at  individual indices, DJ or S&P, I think it would be better to look at the broad market, for instance DWCF.  After all the intention of the IRS would not be to boost a particular index.   If it is found that the broad market does receive this late tax season boost, then I would look to which specialized index is stronger (RS) relative to the broad market.  It looks like for 2015 its the small caps. 

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Posted by: gmbetz@yahoo.com
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April TSP S fund.jpg

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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[TSP_Strategy] Re: Will Stocks Rise thru Mid April? [1 Attachment]

[TSP_Strategy] Re: Will Stocks Rise thru Mid April? [1 Attachment]

 
[Attachment(s) from michaelhbond@yahoo.com [TSP_Strategy] included below]

Sarah,

I respect Mark Hulbert's work, but have found he tends to recycle seasonal analysis that needs updating.  Since your invested in the S fund, I created a chart from my database to see if the April pattern he mentioned holds up.  It doesn't.  I have attached a chart of how the S fund (using the DWCPT index) has performed in the 1st ten days of April over different time frames to include the last four years.


Looking at the S&P 500 (TSP C Fund), it has followed the pattern his article mentioned looking back since 1950 and somewhat since 2001.  But the last four years the first part of April have been negative for the S&P 500 like the TSP S fund.  The S fund has never been strong in early April - more neutral.  April of 2000 was a brutal month and is the difference in two of the plots.  March 9, 2000 was the index's peak and by 14 April had lost 29%, but that would be an exceptional year.  The average of the last four years has seen the S fund down by 2.3% by the 10th trading day.   It begins moving up again on the 11th trading day that coincides with the mid-month bump we see in a lot of the calendar months.


I look for seasonal support and seasonal weakness as one tool in my investor toolkit.  The market may go up in the next two weeks, but not because it has seasonal support.  The S fund does not have it.  Markets can also go down with seasonal support, it is just that they would have gone down more without it. 


Hope this was useful and I hope the chart is viewable,


Michael



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Attachment(s) from michaelhbond@yahoo.com [TSP_Strategy] | View attachments on the web

1 of 1 Photo(s)


Posted by: michaelhbond@yahoo.com
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April TSP S fund.jpg

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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[TSP_Strategy] Healthcare

[TSP_Strategy] Healthcare

 

Not surprising as the ACA ratchets up, though this article doesn't mention it.  Healthcare insurers were always set to be the biggest winners of the ACA. IMHO

 

http://finance.yahoo.com/news/where-hide-earnings-season-100000044.html

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Posted by: hams29avi@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Will Stocks Rise thru Mid April?

[TSP_Strategy] Will Stocks Rise thru Mid April?

 


Opinion: The curious reason why stocks may rise until Tax Day

Published: Mar 27, 2015 5:41 p.m. ET

The theory, for which there's statistical support, is that the government has a vested interest in making sure there is sufficient liquidity

CHAPEL HILL, N.C. (MarketWatch) — Stock market bulls have a most unlikely ally for the next couple of weeks: the IRS.

You read that right. Believe it or not, the stock market historically has performed at a well-above-average rate in the first half of April, and some advisers think we should be thanking the Internal Revenue Service.

One is Dennis Slothower, who publishes a number of investment services I monitor, including "On the Money" and "Stealth Stocks." Several years ago, he mentioned this possible early-April IRS effect, pointing out to his clients that "the government has a vested interest in making sure there is plenty of liquidity in the marketplace for those needing to pay what is shortly due Uncle Sam."

That means the government will do whatever it can to make "sure the [stock] market holds together as best it can going into Tax Day."

Unlike many of the alleged patterns that the 200 advisers I monitor claim to detect in the equity market's largely random gyrations, this one enjoys statistical support. Consider the experience of the Dow Jones Industrial Average DJIA, +1.49% since 1955, which is when April 15 became the date on which personal income taxes are due.

Since then, the Dow's average gain over the two weeks prior to Tax Day has been a gain of 1.22%. The average advance over the first two weeks of all 12 months is 0.3%, or one-fourth as much.

Of course, it's one thing to document a statistical regularity, and quite another to attribute it to the IRS. Yet it remains a likely culprit; I couldn't find support for the other possible explanations I could think of. Here are two that I analyzed:

  • The Halloween Indicator. April is the last month of the seasonally favorable period that begins on Halloween and lasts until the subsequent May Day. But that can't explain strength in the first half of April, since the average first-half gain during the six months between Halloween and May Day has been 0.55%, which — though better than the 0.3% across the first half of all 12 months of the calendar — is still far less than the 1.22% average for the first half of April.
  • Stock market strength the previous calendar year. This hypothesis traces to the plausible notion that stronger markets lead to greater capital gains, which in turn leads to more taxes the subsequent April 15. But it turns out that there is no statistically significant correlation between the stock market's performance in a given calendar year and the market's return over the two weeks prior to the subsequent Tax Day.

Note carefully that the market's upward bias in the first two weeks of April may not be enough to overcome round-trip transaction costs on a short-term trade. But that bias may nevertheless be enough to convince you to give the market the benefit of the doubt at least until Tax Day.

I bet you never imagined you'd be thankful for the IRS, did you?


__._,_.___

Posted by: sarah_oz@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Re: American based stock outlook for 2015

[TSP_Strategy] Re: American based stock outlook for 2015

 

Thanks again for all your helpful information!

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Posted by: rafael.materas@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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[TSP_Strategy] Re: American based stock outlook for 2015

[TSP_Strategy] Re: American based stock outlook for 2015

 

Small Cap Indices like the RUT and DWCPF have continued to make higher highs and higher lows over the last several months.  I will continue to be in a Small Cap based fund until there is a change in direction.   Overnight the Russell 2000 Index Mini (symbol /TF) has been up.  Hopefully we will see an upward move in Small Caps and the S Fund today.    Good luck to all!

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Posted by: gmbetz@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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[TSP_Strategy] Re: American based stock outlook for 2015

[TSP_Strategy] Re: American based stock outlook for 2015

 

Someone is Lieing? How can Billionaires be selling

 

That article has been running since 2013.  Its an advertisement.

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Posted by: sarah_oz@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] American based stock outlook for 2015

[TSP_Strategy] American based stock outlook for 2015

 

I heard that Warren Buffett and George Soros are both pulling most of their wealth out of American based stocks.  Will that ripple and clobber the S and C funds?
 
Is anybody out there considering switch their S and C fund holdings into the G fund?

 
Best Regards,
Stephen D. Thompson
phone: 702.715.6287
email: stevedthompson777@gmail.com
web: https://plus.google.com/114337579805629748937/posts

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Posted by: Steve Thompson <steve_thompson777@yahoo.com>
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Economists View of Current Monetary Policy

[TSP_Strategy] Economists View of Current Monetary Policy

 


Economists View of Current Monetary Policy

Chart of the Week for March 27, 2015 - April 2, 2015

The National Association for Business Economics survey reported that economists feel current U.S. Government monetary policy is: 58% about right, 36% too simulative, 3% too restrictive, and 3% Don't Know/No Opinion.

U.S. monetary policy is reflected in what the U.S. Federal Reserve Board ("Fed") does to influence the amount of money and credit in the U.S. economy. Fed monetary policy actions directly impact short-term interest rates, and influences long-term interest rates and the performance of the economy. According to the National Association for Business Economics ("NABE") March 2015 survey, fifty-eight percent of economists surveyed feel that current monetary policy is about right, thirty-six percent think that current policy is too stimulative, three percent see current policy as being too restrictive, and 3% didn't know or had no opinion.

The Fed's mission is to serve its dual mandates to influence inflation and employment. Seeking to fulfill that mission, the Fed ended its bond buying program and modified its quarterly statements regarding possible future interest rate increases in 2014. As noted in NABE's survey results above, there are differences of opinion among economists on how the Fed is doing with regard to monetary policy. The economy is so complex that even economists who have studied the economy, have historical knowledge of economic events, and have economic models and tools cannot predict future economic conditions with absolute certainty.

The state of an economy fluctuates over time and many factors influence market conditions. Investors can feel uncertain when trying to make investment decisions based on current economic conditions, but they can look to this survey and be assured that they are not alone. When making investment decisions, prudent investors should invest based on their own circumstances taking into consideration their goals, investment experience, time horizon and risk tolerance.


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Posted by: sarah_oz@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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Re: [TSP_Strategy] Re: Fwd: New York Post: Stock market rigging is no longer a 'conspiracy theory'

Re: [TSP_Strategy] Re: Fwd: New York Post: Stock market rigging is no longer a 'conspiracy theory'

 

Anyway, folks, do not be too complacent about the market.  It does work both way also.  What goes up fast, eventually will come down fast also.  So just be careful and be ready to preserve your hard earned capital!  Just my two cents worth...

Paul, the problem often is that, by the time you get concerned, the market is near bottom, and after you sell, it rises. We need to take a longer term focus.

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Posted by: sarah_oz@yahoo.com
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

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