Mission Statement:
To financially empower our clients so that they can achieve their most
important goals and to confidently plan for the future that they envision
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LOL, a trade so easy even a meshuggeneh
could make money!
Sell Rosh Hashana, buy Yom Kippur.
I have to admit the first time I ever heard this I was amused. The thought that stocks trade lower between these two Holidays and climb afterward, on a consistent basis, sounded kind of silly.
It goes something like this: A lot of Jews work on Wall Street and when they leave for the highest of Holy Days, Rosh Hashana followed by Yom Kippur ten days later, trading slows down. Maybe there was a time when this made a tiny bit of sense, but that is total speculation. I mean, it is easy to believe that if you're a big Wall Street macher, you don't want to be caught too long on stocks while your out of the office, right?
According to Jeffrey Hirsch, editor of the Stock Trader's Almanac, this strategy is barely better than a 50/50 shot of working, and when it does work, the return is miniscule. Nevertheless, I think it's a cute and catchy phrase; one that I could add to my schtick while I try to make dinner guests laugh.
Just on observation, it may have more to do with the timing of transitioning from the historically lousy month of September to October, the start of the historically better 6 month performance of the year for stocks. I wonder if a late September High Holiday week would work out better, statistically, for this trade. But hey, I'm no Einstein.
But to try and make this a workable investing strategy, well, I don't want to come off as a schmuck, but I think this is like a rule of thumb; something that comes true just enough times to get you to think you have some statistical edge. Kind of like a coin toss that comes up heads 5 times in a row must mean betting on heads is a winning strategy, in spite of all the evidence telling us the out come is still 50/50.
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For me, the fun thing about this expression is that almost everyone likes to throw in a Yiddish or Hebrew word into a conversation. Maybe because the words sound so out of place to English speaking people. It highlights how Yiddish/Hebrew words have made it into everyday American vernacular.
But to put serious money behind this trade? Oy vey. I'll take a pass.
Wishing you all gut yontif! (wishing everyone peace, love, health and happiness)
Now, let's get to Clips of the Week! I host a live stream every Monday through Thursday, at 4:30 PM ET. The name of the show is BE THE BOSS OF YOUR MONEY. It's a show about personal finance, investing tips, business, and perspectives about relevant content and culture. Below are a few clips that we took out of the live episodes that encapsulate the main topic or lesson.
I hope you enjoy them. If you do, please subscribe to my YouTube channel while your watching them. You could catch my show on LinkedIn, Facebook, and YouTube, links below. You could also watch the replays on my social media profiles too.
Here goes:
The first one is about why value stock investing is so hard. The second one is about ID Theft.
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Please subscribe to my YouTube channel:
Thanks!
Mitch
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Want to schedule a phone appointment with me to speak about your financial goals? click the "Let's talk" pic.
Or email me directly:
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I opened ClientFirst Strategy, Inc. because I believe that the only way to help my clients potentially achieve their goals is by offering unbiased advice & investment management expertise. To my clients, thank you for your continued vote of confidence. If you are not a client but would like to explore the possibility of becoming one, I invite you to call me directly, visit my website, join my email list, and/or connect with me on social media. |
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Mitchell O. Goldberg
AIF®, AAMS
President | Investment Professional
OSJ Manager
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ClientFirst Strategy, Inc.
290 Broadhollow Road, Suite 200 E, Melville, NY 11747
(D) 631-920-6622 (F) 631-920-6624 (C) 516-818-0338
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All the views expressed in this report/commentary accurately reflect our personal views about any and all of the subject securities or issuers and no part of our compensation was, is, or will be, directly or indirectly related to the specific recommendations or views we have expressed in this report. This material is not intended as an offer or solicitation for the purchase of sale of any security or other financial instrument. Securities, financial instruments, or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from securities or investments mentioned in this report may fall against your interests, and you may get back less than the amount you invested. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. You should consult with your tax adviser regarding your specific situation. Diversification is a method of managing risk and doesn't protect against loss in a down market. The S&P 500 and Dow Jones Industrial Average are indexes. It is not possible to invest directly in an index. *The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. **The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy.
Securities and investment advisory services offered through NEXT Financial Group, Inc., member FINRA/SIPC. ClientFirst Strategy, Inc. is not an affiliate of NEXT Financial Group, Inc.
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