"Sell In May and Go Away" is right around the corner
“Sell in May and go away” season is nearly upon investors. Such strategies (also refer to the Halloween indicator) advises selling stocks in May and keeping the proceeds in cash, then buying again in the autumn, typically around Halloween.
The expression "sell in May and go away" refers to the notion that the stock market tends to underperform in the late spring and summer months.
The idea is that you sell all of your stock holdings (or, at least, trim down your holdings) and rebuy them in the fall (typically November).
By doing this, it is thought, you will be avoiding the "weak" months of June, July, August, September and October.
During one, may-thru-october period in each, 4 year presidential cycle, the market has historically done poorly. During the other 3 of the 4, may thru october is the same, performance-wise, as the average November thru april period.
Your homework assignment tonight, coolguy7701, is to determine whether or not the up-coming May thru October period is the one in 4 such periods that historically matters... or whether it's one of the 3 out of 4 that don't matter at all... in regards to the old "sell in may" saying.
Right, but every so often the markets zigs while you zag...Sell in May is too well advertised and three years in a row would be too easy. Mr. market is waiting for the retail guys to try and sell then lift prices as they pile back in afraid to miss the move. I'm expecting a volatile summer with the market moving higher as econs continue to recover globally. Just my guess but will be watching daily. Re: Vegas, that might be the stealth play as a lot of people I know here in So Cal talking about weekends in Vegas again. Even thinking of buying R.E. there while prices still cheap!
Money is coming into the market from bonds and overseas. I don't think the market will drop in May. I think it will be moving sideways. Better earnings stocks will still rise and under performing stocks falling.