{"id":19979,"date":"2023-09-17T03:47:04","date_gmt":"2023-09-17T03:47:04","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/sell-rosh-hashanah-buy-yom-kippur-stock-market-pattern-is-just-a-calendar-event\/"},"modified":"2023-09-17T03:47:05","modified_gmt":"2023-09-17T03:47:05","slug":"sell-rosh-hashanah-buy-yom-kippur-stock-market-pattern-is-just-a-calendar-event","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=19979","title":{"rendered":"\u2018Sell Rosh Hashanah, buy Yom Kippur\u2019 stock-market pattern is just a calendar event"},"content":{"rendered":"
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Is the U.S. stock market a poor performer between the two holidays that mark the start of the Jewish new year? In other words, should you \u201csell Rosh Hashanah and buy Yom Kippur?\u201d<\/p>\n

A Wall Street adage indeed suggests that the stock market is weaker over the 10 days these two holidays are observed. Belief in this seasonal pattern has a long history; it was mentioned in the financial press as early as 1915.<\/p>\n

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Many are asking about the statistical basis of this folk wisdom because Rosh Hashanah begins this Friday evening. To follow the adage, investors would reduce their equity exposure at the market close on Sept. 15 and wouldn\u2019t return to their target exposure until after Yom Kippur ends on Sept. 25.<\/p>\n

My analysis of the Dow Jones Industrial Average
\n DJIA
\n since 1900 yields a mixed answer. It\u2019s true that the stock market in the past has declined, on average, between Rosh Hashanah and Yom Kippur. But these two holidays typically occur during September \u2014 the worst-performing month of the year.<\/p>\n

It\u2019s not clear that the Rosh Hashanah to Yom Kippur stretch is any worse than other days in September. So, as is so often the case, the answer you get from a statistician depends on how you frame the question.<\/p>\n