Since 1984, the FTSE 100 has risen in 58% of years in November, with an average return over the period of 0.7%. This gives it a rank of 6th place for monthly performance. From 1980 its relative performance had been steadily improving, but that trend has reversed since 2006 – the market has risen only three times in November in the last nine years.
Although the longer-term performance of November is only average, the significant feature of November is that it marks the start of the strong six-month period of the year (November to April). In other words, investors should be increasing exposure to the market this month (if they haven’t already done so in October).
On average the market tends to rise ...