Saturday, October 31, 2015

Term of the Day: Halloween Strategy

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October 31, 2015
Halloween Strategy

An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market until October 31, in order to increase capital gains. The Halloween strategy is based on the premise that most capital gains are made between October 31 (Halloween) and May 1, and that the other six months of the year should be spent investing in other investment types or not at all.

Breaking It Down:

The Halloween strategy is closely-related to the phrase, "Sell in May and then walk away," referring to the...

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