Sell In May And Go Away?...I Have No Idea
May has not been a great month for the stock market. If you look at your IRA or 401k statements you'll probably be disappointed. I have a feeling many of us will put our portfolios on the back burner this summer and focus on....a backyard barbecue! Here's some insight from TheStreet.com:
One of the most widely touted market calendar myths is that you should "sell in May and go away." This system apparently worked well from 1950 until about 2003. The Stock Trader's Almanac has assembled data for all the midyear swoons since 1950, but I'd like to bring you the data before 1950 and since 2003.
Last week, S&P strategist Sam Stovall took a new look at the "Sell in May" theory, taking the data back to 1933 (through 2009). He discovered that the S&P 500 index gained 2.5% on average during the months of May through October. More importantly, Stovall also looked at the 15 years like this one - the second year of a bull market -- and he found that the May-October gains in all 15 of those instances (since 1933) averaged +5.5%. Only once (in 1971), did the May-October months deliver a major loss.