3 Frightful Seasonality Trends

Ahead of Hallow’een, which stocks are displaying frightful bearish seasonal trends?

One unsurprising listing on the top 3 bearish seasonal list is iShares Mortgage Real Estate Capped ETF [REM].

If you think about buying habits in the property sector, they tend to peak during spring and summer months with fall and winter showing signs of slowdown, so the share prices may seasonally discount the slowdown in demand quite predictably.

Over the next 5 weeks, the iShares Mortgage Real Estate Capped ETF has historically fallen by 7.2% based on the past 10 years of stock performance.

Another company that has typically suffered over the next 5 weeks based on seasonal trends is Green Dot Corporation [GDOT], which is a pro-consumer technology bank holding company that provides personal banking to the masses.

The company has branded products including Green Dot Mastercards, Visa branded prepaid debit cards, gift cards, and swipe and reload products.

It sells its products generally to unbanked and underbanked customers via approximately 100,000 locations, including retailers, financial service locations and tax preparation office, as well as app stores and online tax preparation providers.

With its distribution channel reliant somewhat on tax preparers who are not going to experience a peak season for another few months, it’s not a surprise to see Green Dot typically experiences a pullback over the next few weeks.

Based on 7 years of performance, the general pullback has averaged 6.7% over the next 5 weeks.

The final stock on our list of bearish seasonal stock market trends over the next 5 weeks is Masonite International Corporation [DOOR].

Masonite designs, manufactures, and sells doors for new construction, repair and remodeling for residential and non-residential building construction markets worldwide.

With the winter season approach, it is not surprising to see investors discount a business slowdown before it occurs.

Over the next 5 weeks, Masonite has historically experienced a drawdown of 5.9% based on 7 years of trading history about 85% of the time.


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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.