Don’t Wait for May to Go Away
An old stock market “saw” states, “Sell in May and go away,” emphasizing that the worst part of the year for stock performance is the months between May and November. To be sure, a $10,000 investment in the DJIA purchased in November and sold in April grows to ~$480,000, while the same strategy employed between May – October shows a loss of ~$328 (study: between 1950 –
2003) . . . thus, “sell in May and go away.” Obviously we have modified that old axiom this morning given our statement – “Don’t wait for May to go away!” Nevertheless, despite having beentoo soon’ly cautious since S&P 1150 – 1160, which is tantamount to being wrong, we are “stepping up” our cautionary counsel this week.
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