Trying to time the market is a significant challenge that even professional investors struggle with. So, there are a couple of simple points that can help those wanting a more passive style of investing.

Simple point number 1

Global indices, over the long term, gain. Whatever the crisis has been, eventually global stocks recover. The MSCI All Country World Index shows that over time stocks have gained.

Simple point number 2

Certain times of the year offer a statistical edge for global index investors. Those who invest in the winter months in global stocks tend to see outsized returns. Look at the Dax, FTSE 100, S&P500, and Dow Jones for some key examples.

So, in order to benefit from the long view, without trying to time the market entering global indices around now and holding until the end of the year tends to be a successful strategy. Not every year, but most years. In some situations, especially when buying and holding global indices, that has proven to be a historical advantage.

Major Trade Risks: The main risk here is that previous seasonal patterns, although based on key reasons, are not guaranteed to happen again in the future.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.


HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.