Study: Yomim Tovim Affect Stock Market


stock-market-stocksA new study by Nova Southeastern University researchers finds that the old adage “sell Rosh Hashanah, buy Yom Kippur” does, in fact, yield higher returns.

“Observant Jewish traders represent a small proportion of all market participants but, at the margin, their withdrawal during the High Holy Days thins out the market, increases volatility and risk, and may discourage others from trading as well, thus creating a snowball effect,” said Pan Yatrakis, a Nova Southeastern University professor of finance and economics, in a news release.

Yatrakis co-authored the study with Albert Williams, an assistant professor of finance and economics.

The two studied Dow Jones Industrial Average daily closing values from 1907 to 2008, focusing on the three trading days before Rosh Hashanah and three trading days after Yom Kippur. They found that the “Jewish Holiday Effect” yielded a 1 percent return.
“So, if you were to sell $1 million worth of stock around Rosh Hashanah and then buy back those stocks at Yom Kippur, you should make about [a] $10,000 profit,” Williams said.

This year, Rosh Hashanah begins Sept. 28 and Yom Kippur is Oct. 7.

{South Florida Business Journal/ Newscenter}


  1. to #1: How to we know that when you drop a ball it will fall? b/c thats what is always does
    But you are right just because something happend doesnt mean it will again. but if you have a reason for it happening in the past and that reason still applies then it is reasonable to assume it will happen again. (keeping in mind this is an avg.)
    to #2: no they got it right sell Rosh Hashana buy yom kippur.

    to #3: once publicized if more ppl act on the information the effect would strengthen in antything

  2. #4, people will start buying before Yom Kippur in anticipation of a rise in the market afterwards, thereby negating the whole effect of a rise only after YK.