One key pattern that you see in the markets is that often shares tend to rise in the final quarter of the year. From the end of October through to Christmas is often a very strong time for the global indices. Volkswagen shares show a great example. So, as car manufacturers hopefully start selling again on re-opening economies are Volkswagen strong seasonals worth considering?
Over the last 10 years, Volkswagen shares have risen 90% of the time between September 30 and December 25 with an average return of +15.40%. The largest gain was in 2015 with a 36.21% gain. The largest loss was in 2018 where the DAX registered a -9.88% loss.
Major Trade Risks: A good NFP jobs number could mean investors fear a faster US monetary policy normalisation and that can weigh on stocks.