Seasonality is a recurring pattern in data or economic activity associated with particular times of the year. Retail, for example, can experience different effects during the Christmas season than during summer holidays. Treating seasonality as removable noise can mislead financial forecasting: annual prediction does not eliminate broader economic cycles. section 8.1.3
Use seasonality analysis cautiously because:
- A product launch that fails near year-end can create severe problems despite strong preceding-month results. section 8.1.3
- Models trained during recessions may produce different forecasts from models trained during bull markets. section 8.1.3
- Automated-trading models can lose profitability when market trends change, even after producing profits. section 8.1.3







