The infamous May is upon us, although, as we’ve pointed out recently, the ASX200 has rallied through 6 out of the last 10 Mays, delivering investors an average small net gain. Subscribers who like to watch the market seasonality closely should be far more concerned by August and September; the average loss over these 2-months over the last decade is 3.84%. At this stage, we remain net bullish towards the ASX, especially when we reference the highly correlated Canadian TSX and UK FTSE indices, with the latter again notching new highs early in last night’s session. However, two of the market’s recent strong characteristics continue to prevail, and they need to be understood to add alpha (performance) to portfolios.
