Event: Martin Luther King Day
Martin Luther King Day celebrates his birth on January 15, but to ensure a three-day weekend this federal holiday is held on the third Monday of January. MLK day became a federal holiday in 1983, but it was not until 2000 that all 50 states made it a state government holiday. As it is a relatively new federal holiday we don’t see the commercialization that surrounds Presidents’ day in February. Instead, we see dignitaries lay a wreath at the foot of King’s sculpture “The Stone Of Hope” to acknowledge struggles against racial segregation and racism.
The markets, in genneral, perform better the closer we get to the MLK 3-day holiday.Â
Market ComparisionÂ
How do the markets perform leading up to MLK day … specifically the Friday before the three-day weekend.? The analysis table below breaks down each of the 30+ markets into four separate trading periods. These time frames span 6-days, 4-day, 2-days and the event day itself. The return performance for each time frame is measured against its normal performance during the year to calculate a final over or underperformance return. This metric quantifies, in percentage points, the advantages or disadvantages associated with Martin Luther King Day. Markets highlighted with a checkmark or an “x” should be closely monitored for potential strength or weakness heading into the event.Â
Calendar Breakdown by Events
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