Seasonality plays a huge role in many industries: businesses that may be successful in summer may not be in demand in winter, and vice versa. But does seasonality matter in stock trading? And what stocks are usually more popular in the summer? The answer is yes, seasonal patterns repeat themselves in the stock market as well. In our article about seasonal patterns, we have indicated that on average the so-called winter (period between November 1 and April 30) is more successful on the stock market than the so-called summer (period between May 1 and October 30).
However, it does not mean that investing and trading should be completely avoided in summer. On the contrary: some traders believe that it may be the time to collect the stocks that might be cheaper during that period with a possibility to grow in the upcoming months. To elaborate on this, below are some examples of possible picks for every type of trader out there. All of the examples are available for CFD trading on the IQ Option platform.
Airbus (AIR)
The airliner manufacturer is steadily recovering from its losses in 2020 which some traders may see as a premise if interested in this industry. Judging by the results of previous years, where the quiet and less successful months of June and July were followed by peaking months of August, September and October, it might show even better results in the following months of 2021. A 5-year truce agreement with the long-time rival Boeing might only add to the positive news about international tourism with more countries reopening their borders.
Beyond Meat (BYND)
A company that produces plant-based meat substitutes and is committed to revolutionizing the way we eat our burgers, Beyond Meat reinvests as much as 7.8% of its sales back into research and development of their product. This allows it to improve, become more sustainable and have better taste qualities and indicates the long-term oriented approach of the business. The volatility might provide an opportunity to take advantage of the daily price fluctuations, if interested in this industry.
McDonald’s (MCD)
If we take a look at the chart, in the last several years, McDonald’s stock seems to grow more actively in the summer and early autumn months. It might be thanks to the seasonal additions to the restaurant’s menu, but that makes the stock one of the potentially attractive stocks to consider in summer. The company with 80 years of history still remains highly popular among many traders.
Do you adjust your trading according to the season? Let us know in the comments below!
*Please note that past performance is not an indicator of future performance
