Definition
Seasonality refers to predictable fluctuations that recur at regular intervals (monthly, quarterly, annually). In stocks, examples include the January Effect, 'Sell in May', and end-of-quarter window dressing. Seasonal patterns may result from tax considerations, institutional behavior, or economic cycles.
Example
Retail stocks often outperform in Q4 due to holiday shopping, showing predictable seasonal strength.
FAQ
What is Seasonality?
Predictable patterns that repeat at regular time intervals.
Why is Seasonality important?
Seasonality helps investors evaluate technical analysis and make more informed decisions.