Investment managers understand that the summer is a period when there can be more volatility in the market. This is because many investors prefer not to attend to their own private investing during periods when many are enjoying relaxing during their holiday time off from work.
Summer periods can be volatile, yet some summers can break into a bull market with tremendous gains as this summer did in July. If investments are sold off, you can miss gains accruing in these periods of growth. The graph reveals a summer period of 2012. Though it was volatile, the TSX rose from 1143 on June 1 to 12446 on September 14, 2012.
Source: Yahoo Finance. TSX Graph showing the summer period of June to September 2012
What can you apply in your own portfolio? We recommend utilizing highly trained fund managers, and/or advisors trained and licensed in this field.