February is the third strongest month; but it hasn’t always been so strong, as just seven years ago it was ranked ninth. The market has risen in February in 61% of all years, with an average return of 1.1%. In fact, the market has only fallen twice in February in the last 13 years – and is currently on a six-year winning streak (the longest for any month). The average chart shows that the market tends to rise for the first two-and-a-half weeks and then drifts lower for the rest of the month.
With January, February is the best month for mid-cap stocks relative to the large caps. Since 2000, on average the FTSE 250 has outperformed the FTSE 100 by 1.7 percentage points in this month.
This is one of ...