As the amount of money being circulated in the United States stock market increases, investors are presented with more opportunity to make a profit. Previous studies contradict one another on whether or not pattern recognition can yield above-average risk-adjusted returns in the market. The current study examines whether or not the Stock Broker's Almanac list of hot months can be implemented to identify a consistent pattern in the stock market. The numerical values collected for the stocks were tested and analyzed to determine whether the use of hot months is a profitable investment strategy in the stock market. Results indicate that seasonal investing may in fact be a successful strategy if properly applied to the United States stock market.
In 2009 the global markets experienced a crash the likes of which had not been seen since the Great Depression. This paper seeks to use principles of behavioral finance to analyze the economic climate generated before, after, and during a "bubble" period. The efficient market model presented by Eugene Fama is unable to explain the phenomenon known as a bubble period. Using traditional and nontraditional stock indicators, this paper will examine the correlation between volume and price in relation to the climate in which bubbles are generated.