Time to Sell in May?
One of the most popular investment axioms is about to take over the airwaves: “Sell in May and Go Away.” That’s because the upcoming six months (from May until the end of October) have historically been the weakest six-month stretch of the year, as our LPL Chart of the Day shows:
Over the next few days, we’ll take a closer look at the reasons you should—or should not—sell in May this year. Stocks are up 25% from the December low, and we’re entering a historically weak seasonal period. However, stocks typically have been up on average these six months and they’ve been up 6 of the past 7 years. “Yes, ‘sell in May’ has a nice longer-term track record,” said Senior Market Strategist Ryan Detrick, “but that doesn’t make it gospel.”
Be on the lookout for more commentary on selling in May in this blog later this week and in our Weekly Market Commentary next week.
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