Ramadan And The Stock Market Effect

1 year ago
1

In this video, we explore the performance of the stock market during the Muslim holiday of Ramadan. Ramadan is a widely celebrated holiday across the world, including countries such as Saudi Arabia, Turkey, and Egypt, where we follow the lunar calendar like the Sunni Muslims.

Using the S&P 500 index, we found that the returns during Ramadan are decent but not spectacular, with an annual return of 1.1%, slightly more than buy and hold considering the less time spent invested (8%). However, we noticed that returns from 2008 till today have been poor.

We also backtested the same strategy using ETFs from Saudi Arabia, Turkey, and Egypt, but the results were flat over the last 15 years, indicating that the strategy does not perform well in these countries.

Our Ramadan trading strategy is just one of many hundreds of strategies that we present on our website. We encourage you to check out our website and explore our other free trading strategies. If you enjoyed this video, please do not forget to like and subscribe.

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https://www.quantifiedstrategies.com/ramadan-trading-strategy/

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