FYI: Fund managers who pick stocks for a living just watched a good year turn sour. That may not be such a bad thing for everyone else.
It’s an old theory, but one with a basis in improbable pieces of data: the S&P 500’s record of rallying in the fourth quarter, which has happened 25 times in 30 years. Even crazier is the index’s propensity to rise after a midterm election. In 18 instances since 1946, it’s always gone up.
Fun-with-statistics? Maybe. But some see a logical pattern, one in which active managers who have struggled for 10 months dash into aggressive bets as the clock winds down. As investors bask in what passes for calm after the worst month in seven years, bulls are hoping for a repeat.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-11-09/trying-to-salvage-a-ruined-year-in-stocks-with-seven-weeks-to-go
