Halloween Strategy

Definition

A stock investment strategy stemming from the historical fact that most capital gains can be made between October 31-May 1. Estimates for returns on capital gains can reach as high as 80 percent in this time period. For the other six months, funds would not be invested in stocks but would be invested in other financial instruments or not at all. The phrase, "Sell in May and walk away" is related to this belief. Also known as Halloween Indicator.
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half-yearly halo effect