Buy for the herring and sell for the crayfish" - Do you recognize the expression?

The saying recommends that you should be active with your investments and buy stocks and funds around midsummer, when herring and potatoes are traditionally eaten, and then sell off during the crayfish party season in September. But does it really hold true? Is it during the summer months that the best returns are generated?

Here are my thoughts:

Maximizing returns and investing wisely is the goal for most investors. These thoughts are also the very foundation of classic investor sayings like "Buy for the herring and sell for the crayfish". We constantly try to find ways to interpret seasonal patterns and understand market psychology. But it's difficult. This is evident especially since the Swedish herring saying contradicts other well-known adages, such as the famous maxim "Sell in May and go away". This suggests that, contrary to what the Swedish saying implies, the best returns are created between October and April.

So what is true, really? Is stock trading a summer flirt or a winter sport? Is there any evidence to sell in May and then retreat? Yes, history actually shows that the summer months have not always been the most rewarding for investors. But does that mean the Swedish saying is wrong? The answer depends on your perspective.

Returns on the Stockholm Stock Exchange have varied during the summer months, but one thing is certain: a sustainable and well-balanced strategy has historically been the key to long-term success, regardless of the season. Therefore, it is also one of my top tips for savers: Be long-term oriented. There is an expression that, in my opinion, surpasses most others: "Time in market beats timing in market". Visualize your goal, make a plan, review your savings regularly, and stick to your long-term strategy.

//Hugo

P.S. There are several savings forms suitable for long-term saving. Here is a tip on one of them and how to get started.

5 quick tips:

  1. Stick to your long-term goal: Follow your savings plan and let market fluctuations even out over time.
  2. Take advantage of time: Reinvest returns and let the power of compound interest work for you.
  3. Ignore short-term trends: Don't try to time the market and don't let emotions dictate your investment decisions.
  4. Diversify your risks: Maintain a balanced portfolio with different asset classes to reduce risk, adjust the risk level according to your situation and investment horizon.
  5. Keep saving regularly: Monthly investments in funds to spread risks over time and buy both during upturns and downturns.

    Remember that investments involve risk. Past performance is not indicative of future results.

Ivestor classics:

"Sell to the herring and buy to the crayfish" A Swedish saying that advises investors to buy stocks and funds at Midsummer and sell their investments at the crayfish premiere in August.

"Sell in May and go away" Another famous financial phrase. Here, the tip is for investors to sell their stocks in May and avoid the market until autumn. The saying is based on historical data showing that the market tends to underperform during the summer period.

"Time in market beats timing in market" An investment strategy focusing on long-term outlook. Instead of trying to time the market, the advice is to stay invested over time to take advantage of the power of compound interest and long-term growth.