Seasonal tendencies

From Wikipedia, the free encyclopedia

Seasonal tendencies describe the inclination for markets to follow consistent patterns from one year to the next.

Market prices are often subject to seasonal tendencies because the availability and demand for an item is not constant throughout the year. For example, natural gas prices often rise in the winter because that commodity is in demand as a heating fuel. In the summer, when the demand for heat is lower, prices typically fall.

Seasonal patterns are not confined to prices; many other systems can exhibit the same kind of calendar effect. However, the term is most often used in an economic context.

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