A Santa Claus rally for stocks is in the cards for 2023, according to Bay Street experts who see bullish seasonal trends aligning through the end of the year. The well-worn investment axiom “Sell in May, and go away,” and its inverse “Halloween indicator,” are in full effect right now, says Brooke Thackray, a research analyst at Horizons ETF Management Canada linked to the firm’s seasonal rotation fund (on Thursday, noting a recent low for stock indices on Oct. 27, days before Halloween.
Greg Taylor, chief investment officer at Toronto-based Purpose Investments, says seasonal indicators have proven useful in a year where volatility sources ranged from new Middle Eastern wars to a U.S. regional banking crisis. “Market participants have learned to expect an increase in volatility during the months of August through October, and this year didn’t disappoint,” Taylor wrote in a recent analysis piece. "While many indicators haven’t worked as well lately, seasonality seems to be working out wel