Editor's Note: At Monument Traders Alliance, we believe it's important to consider other investment ideas outside of our own to give you the most options possible to achieve financial freedom. In today's guest article, Manward Press's Chief Investment Strategist Shah Gilani is showing readers which sectors are poised to break out depending on the season we're in. Plus, Shah is also revealing his No. 1 Stock to Buy EVERY December. These stocks have as hot for 95% monthly gains on average! Click here to get Shah's No. 1 Stock to Buy EVERY December. - Ryan Fitzwater, Publisher Shah Gilani, Chief Investment Strategist, Manward Press There's a season for everything... especially stocks. Seasonality and cyclicality in trading and investing are not merely trends or passing fads... They are the heartbeat of the markets, pulsing with predictable opportunities for smart investors. Cyclical investing reflects the ebb and flow of economic cycles. Investors who understand these cycles rotate into sectors poised for growth during specific phases. That gives them an opportunity maximize their portfolio returns over time. As a 40-year market veteran, I've witnessed firsthand how these patterns can unlock substantial profits. You can find these seasonal surges and cyclical upturns in many sectors. Nature's Rhythm Seasonality is huge in the commodities sector. The prices of certain commodities correlate with specific times of the year. Those prices are driven by factors such as weather patterns, agricultural planting and harvesting cycles, and global demand shifts. For instance, corn and soybean prices are influenced by planting and harvest seasons. As spring approaches, farmers prepare their fields and plant crops, which in turn drives up prices as demand for these commodities spikes. Then during harvest time in the fall, increased supply can lead to temporary price dips as markets adjust. Knowing these cycles helps traders buy and sell at the right times. (And if you're using leveraged futures or ETF trades, including with options, you can make a lot of money.) Energy commodities like natural gas and heating oil have obvious seasonal patterns driven by weather extremes. Winter brings demand for heating fuels, pushing prices higher as cold snaps grip northern regions. During the summer, demand for cooling fuels like natural gas for electricity generation rises. While commodities follow seasonal patterns closely tied to nature, other sectors have their own rhythms. |
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