Why Tuesdays Might Just Be the Market’s Secret Weapon – According to 7IM’s Stock Market Trends

At KGJ Insurance and Financial Advisers, we regularly review stock market trends from some of the UK’s most trusted investment partners to help our clients stay informed and confident—especially during turbulent times. One recent analysis from 7IM (Seven Investment Management) really stood out.

Let’s go back to 2008.

The global financial crisis was raging. The S&P 500 fell by a staggering 49% from peak to trough. Markets were in chaos. Investors were panicking.

But as 7IM pointed out, hidden within all that market volatility was an unlikely bright spot—Tuesdays, a surprising outlier in that year’s stock market trends.

According to their research, while every other day of the week had a negative average return in 2008, Tuesdays actually delivered a positive return of +0.44%.

That’s not a typo. In fact, if you had only invested in the market on Tuesdays—buying at the start of the day and selling at the close—you’d have ended 2008 with a +24% return.

The Breakdown: Stock Market Trends by Day (2008)

Day Average Daily Return Full Year Return
Monday -0.31% -17.0%
Tuesday +0.44% +23.5%
Wednesday -0.62% -29.6%
Thursday -0.20% -11.4%
Friday -0.01% -3.8%

Source: FactSet/7IM

A Global Pattern in Stock Market Trends

This wasn’t a one-off anomaly. 7IM identified similar Tuesday strength in other volatile years, including 2020 during the Covid crash, and across different indices—not just the S&P 500, but also the FTSE 100. These recurring patterns reveal deeper psychological drivers behind stock market trends.

Why Do Tuesdays Stand Out?

According to 7IM, the explanation behind this Tuesday effect isn’t based on technical indicators—it’s psychological.

Here’s the pattern they observed:

  • Thursday: Negative news begins to circulate.

  • Weekend: Anxiety grows, fuelled by media coverage.

  • Sunday night: Asian markets react first, often falling.

  • Monday: European and U.S. markets follow suit with declines.

  • Tuesday: Cooler heads return. Fear fades. Bargain hunters step in.

This emotional rhythm shows how human behaviour and sentiment can strongly influence stock market trends, sometimes more than economic data or earnings reports.

What This Means for Investors

To be clear, no one—least of all 7IM—is recommending a “Tuesdays-only” investment strategy. That would miss the broader lesson.

The real insight is that even in high-volatility periods, stock market trends often follow emotional cycles. Recognising these patterns can help investors maintain perspective and avoid reactive decisions.

At KGJ, we work with trusted partners like 7IM to make sure our clients not only have access to quality investment options, but also valuable market insights—like these nuanced stock market trends—to guide their decision-making, and as we at KGJ say, it rather goes to show that psychology is the science behind market movements!

Invest with Perspective—Not Panic

This analysis of Tuesday’s performance serves as a reminder that markets are driven by people, and people follow patterns. By understanding and anticipating those emotional cycles, investors can avoid rash decisions and stay committed to long-term strategies.

Want to make better sense of stock market trends—on Tuesdays and beyond? Talk to the KGJ team today. We’re here to help you invest with confidence, every day of the week.

 

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