MomSeason16YrPlus · Other · Heston and Sadka (2008)

Return seasonality years 16 to 20

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1942Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
4.23%
95% interval 1.13% to 6.97%
Next year
2026Q4–2027Q3
4.24%
95% interval 1.12% to 6.97%
Next five years
2026Q4–2031Q3
4.26%
95% interval 1.00% to 7.07%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+3,611% since 1942Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1942Q1–2024Q4 5.09% 12.09% 0.42 3.83
2020Q1–2024Q4 0.02% 16.57% <0.01 <0.01
2024Q1–2024Q4 −7.38% 14.00% −0.53 −0.53

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.35 0.09 – 0.58 <0.01
2026Q4–2027Q3 0.35 0.09 – 0.58 0.01
2026Q4–2031Q3 0.33 0.06 – 0.57 0.01
Category
Other
Form
Continuous
Data
Price
Sorted on
High minus low
Names per leg
91 long / 91 short median · 57 at the 10th pctile
Original sample
1965–2002