Sell in May and Go Away???
It’s finally starting to feel like spring and, according to my crystal ball, it will hit 80 degrees on Monday. At least that’s what accuweather.com is showing me as I pen this on Wednesday morning.
After going through our long winters, there’s nothing like a greening of the trees and lawns, the budding of flowers and the scent of fresh mulch to give us that feeling of renewal and rejuvenation.
So… what about the markets as we celebrate May Day? There’s that old adage “Buy in November and Sell in May… Then Go Away.” It’s certainly been true that there are years when you would have been smart to sell all your stocks and go to cash at the beginning of May, staying out of the market until early November.
According to a blog post on Barron’s (read here) this week, it seems that we may have a different outcome this spring. Money seems to be flowing into stock funds and ETFs.
Where’s the market heading? Good question and one for which I won’t venture a guess. This we do know… market timers rarely get out and back in at the best times, often underperforming the markets.
Skittish on the markets and scared about losing too much if the market tumbles? If that’s the case, maybe you have too much in the market.