Denver Business Daily

I noticed many Mutual funds went down in November. What do they historically do in December?

I researched about 25 to 30 Mutual funds in order to buy six to ten funds and was surprised to see almost all went down in November. I would like to buy, but am not sure if Mutual funds have a history of going down in December. Does anybody know?

Public Comments

1. no, they only do that, when the market takes a beating.
2. Actually, December is typically a very good month for the stock market, but then again so is November. I guess it just goes to show that historical averages tell you very little about what is going to happen today, tomorrow, or next month. Take a look at the following link. It includes a chart of average monthly stock returns as measured against a basket of well known market indexes. It turns out that December has the best average, while August is the worst, at least during the period measured (1989-2006).
3. Mutual Funds are long term investments. What they do in a particular month has no bearing on their long term result. The difference in buying at the high or at the low of a fund will make microscopic difference 20 years from now. Think long term my friend and put a happy smile on your face! Please read my profile and lets chat via email