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Investments glossary

Halloween Strategy

The Halloween strategy, Halloween effect, or Halloween indicator, is a market-timing strategy based on the theory that stocks perform better between Oct. 31 (Halloween) and May 1 than they do between the beginning of May through the end of October. The theory posits that it is prudent to buy stocks in November, hold them through the winter months, then sell in April, while investing in other asset classes from May through October. Some who subscribe to this tactic say not to invest at all during the summer months.

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