Stocks have been taking off in the past 2 weeks.
If you’re wondering why, it’s simply explained by seasonality. The summer is behind us, and it’s back to work for the institutions. (There are other factors, like interest rates, which look like they may be headed for a pause.)
The institutions’ job is to profit now. How do they do it? By creating volatility and trading that volatility.
And there should be more good news coming!
One of my favorite times of year is November through December when Retail gets a huge boost, and the EFTs and mutual funds participate in WINDOW DRESSING.
What is window dressing?
It’s when shop owners put their most desired products in the window, add some decor, and invite you in by looking fabulous.
Funds don’t have windows to dress, you say? No, they do not. But, they must publish the stocks in their funds in January 2024. They want to look stellar, so we are tempted to buy into their fund.
So, what do they do?
They buy stocks that have performed well in the last year in November and December, so they look genius when they publish what's in their fund come January. These stocks must also be big household names that you and I recognize to impress us further.
It’s a sleight of hand, for sure. You can get mad about it, but why get mad when you can get profits instead?
Do what they do. :)
