View more on these topics

October to January is best time to buy stocks

October through to January is the best period to invest in the stockmarket, according to research by Hargreaves Lansdown.

HL has taken the total return of the FTSE All Share index in every month of each year from the start of 1970 – when Lipper began monitoring the index – to July 30, 2003.

Each of the monthly returns has been added together over the whole investment period and then divided by the number of times that month has occurred. For instance, there are 34 Januarys between January 1970 to July 30, 2003.

The results show January to be the most lucrative time to invest, giving an average return of 488 per cent. December is second with 476 per cent while November is third with 463 per cent. Fourth is October with 461 per cent.

The worst month to invest is May, which has given an average return of 419 per cent while June is shown to return 429 per cent and March offers a figure of 434 per cent.

HL says the results show the benefit of choosing specific times to invest, particularly considering that the fourth quarter has often been subject to the most severe financial meltdowns, such as the 1987 crash and the Asian crisis of 1997.

These downturns often offer investors a great opportunity to enter the markets, it says.

Investment manager Ben Yearsley says: “October through to January is clearly the best time to invest. The summer months are usually the quietest. It shows that the point of maximum pessimism – often in the fourth quarter – is the best time to invest.”

Simpsons of Brighton IFA partner Andrew Merricks says: “I would have to agree. The run-up to Christmas and the New Year is usually a good time to invest, in the same way that investing straight after the Isa season is not.”


Pivotal adds consultancy for IFAs

Pivotal, the multi-manager platform launched in March 2003, has announced the launch of its second phase, a business consultancy aimed at UK IFAs. The company which is backed by the National Australia Bank and headed up by former Scottish Amicable group sales director John Cowan, says the consultancy will aim to help IFAs looking to […]

Pickering says public will realise Isas beat pensions

Alan Pickering, the author of the Pickering review on pension simplification, has accused pensions minister Malcolm Wicks of living in cloud cuckoo land if he thinks consumer education is going to solve the pension crisis.Speaking exclusively to Money Marketing last week, Pickering attacked Government pension policy, claiming educated consumers would realise they are better off […]

Status symbol

Stop a person in the street and ask them what image is conjured up by “certified” or “certificate”.The chances are that they will tell you that certified brings to mind either a person who is less mentally well than they might be or, in the case of certificate, the piece of paper you might receive […]

Dunbar pushes life plan to IFAs

Zurich is aggressively promoting its Allied Dunbar protection range to IFAs following the sale of its Zurich Life subsidiary last week.IFAs claim that since the sale they have been contacted by Allied Dunbar broker consultants pushing the Dunbar-branded High Cover plan.The plan is a combined life and critical-illness product with annually reviewable premiums that has […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm