There aren't many consistent big summer stock winners. In our sector watch, biotech is the one sector that tends to perform well in the summer months, starting in August, and July tends to be the best summer month overall for the S&P 500 stocks.
Your long-term holdings you leave alone, but your shorter-term ones you may want to move.
You're dealing with a seasonal period that's less favorable for markets and you're also dealing with end of quarter portfolio issues.
The market dropped dramatically after January 1982, bottomed, and ended up rallying and starting the next bull market, ... We're not at all in the same part of the cycle right now.
But that was just a minor correction on the heels of a huge bull market. The market's former success seemed to be more of an indicator that year,
An event like this can be the proverbial straw that breaks the market's back.
I don't think these heavy issues will threaten the end of year rally, but I don't think 2005 and 2006 are going to be great.
There also tends to be a broader July 4th rally, and then after that, a lot of lower volume and a flat-to-lower bias through the rest of the season.
Everyone is focusing on what's happening and making plans for where the markets are going to go.
Not really, as we've had a pretty typical first and second quarter. It looks like we'll see the traditional minor summer rally.
