How to use market patterns to master your portfolio

About this Video

• Video Title: How to use market patterns to master your portfolio
• Channel: Yahoo Finance
• Speakers: Jared Blickery, Alli Canal, Jeff Hirsch
• Duration: 00:22:14

Introduction

This Yahoo Finance video podcast discusses market cycles and seasonality to help viewers improve their portfolio management. The hosts interview Jeff Hirsch, an expert on seasonality, to gain insights into predictable market patterns and how to utilize them for better trading decisions.

Key Takeaways

• August and September are historically the worst months of the year for the stock market. This pattern has repeated enough to be considered a reliable trend, though not guaranteed.
• Market cycles consist of four stages: growth, peak, decline, and recovery. Understanding these cycles can help investors anticipate market movements.
• Various indicators are used to assess market conditions, including sentiment, new highs/lows, and the MACD (Moving Average Convergence Divergence). However, predicting tops is more challenging than bottoms.
• The four-year presidential election cycle influences market seasonality. Different patterns emerge in election years and post-election years.
• The impact of technology, including AI, biotech, and quantum computing, is significantly shaping long-term market trends. The expert suggests we are in early stages similar to the early days of the personal computer.