The Halloween Effect Could Give Stock Investors a Treat

A new study has found that stocks worldwide have performed better between November and April for centuries.

Yes, Virginia, there is a stock market Santa Claus -- and he starts giving gifts right after Halloween.

The Halloween Effect, which postulates that stocks tend to do better from November through April, has been debated for decades. No doubt, the next six months will test the Halloween Effect. The threat of the fiscal cliff has investors on edge, as does election uncertainty and disappointing third quarter earnings reports. But now comes a new study -- the most comprehensive on the topic -- that confirms that the Halloween Effect is real.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.