The Seasonality Action Practice blog from December 16, 2016 is about the two most impactful decisions you can make as an investor. Academics have produced stacks of papers confirming that your asset allocation decisions have immense consequences that flow directly to your bottom line. I maintain it’s the second most important investment decision you can make.
The most important decision is making a commitment to actively and regularly rebalancing your asset classes. That’s where seasonality comes in by putting the probability winds at your back as you buy and sell to realign your positions with your target allocations. The discipline decision is the most important because while seasonality has a degree of predicable probability, human behavior is predictably irrational.