Nick Warrell
United Kingdom
2m
Edited
๐“๐‡๐€๐“โ€™๐’ ๐ˆ๐๐“๐„๐‘๐„๐’๐“๐ˆ๐๐† "Buying the Dip" The DAX 40 ($GER40) is down ~7%, the S&P 500 ($SPX500) ~5%, and the FTSE 100 ($UK100) ~4% from recent highs โ€“ one of those moments where buying the dip could make sense. ๐˜‰๐˜ถ๐˜ต ๐˜ธ๐˜ฉ๐˜ข๐˜ต ๐˜ฅ๐˜ฐ๐˜ฆ๐˜ด ๐˜ต๐˜ฉ๐˜ข๐˜ต ๐˜ฎ๐˜ฆ๐˜ข๐˜ฏ? Think of it like shopping during a sale โ€“ youโ€™re picking up the same items, just at a better price. With December around the corner, the timing could be a good one, because the final month of the year has often been strong for markets. ๐—ช๐—ต๐˜†? โ€ข The S&P 500 averages around +1.5% in December since 1950, finishing higher about 73% of the time. โ€ข The FTSE 100 averages just over +2% in December since the mid-1980s, with roughly 83% of Decembers ending positive. December has historically been one of the stronger months for equities. There are a few reasons: trading slows as fund managers take holidays, so even small bursts of buying can lift prices. Many tidy up portfolios for year-end by trimming losers and adding winners. Investors who sold losing positions to reduce taxes are mostly done, and year-end bonuses start hitting the market. With fewer company announcements and less unexpected news, markets can drift upward almost by default. Some Decembers have been hit by shocks, and with valuations stretched, remember: ๐—ฆ๐—˜๐—”๐—ฆ๐—ข๐—ก๐—”๐—Ÿ๐—œ๐—ง๐—ฌ ๐—œ๐—ฆ ๐—” ๐—ฃ๐—”๐—ง๐—ง๐—˜๐—ฅ๐—ก โ€“ ๐—ก๐—ข๐—ง ๐—” ๐—š๐—จ๐—”๐—ฅ๐—”๐—ก๐—ง๐—˜๐—˜ ! High valuations, geopolitics, or rising bond yields can outweigh any holiday cheer. โš  Copy Trading is not investment advice | Capital at risk | Past performance does not guarantee future results
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