This article is a good review of the Sell in May Strategy ... and, what investors might be looking to do during October.
http://www.marketwatch.com/story/those-who-sold-in-may-are-looking-to-return-to-stock-market-2015-10-02I am thinking that I might just sit this season out and not raise my allocation to stocks come fall. And, when May comes, I just might reduce my allocation to stocks further should earnings continue a downward movement. Currently, my asset allocation range to stocks is based upon a risk tolerance assessment and ranges for a low of 40% to a high of 60% within my portfolio. Currently, I am at about 50% equity so if stocks have a good run this fall and on into spring then this allocation would work its way upward, and, with this, I could rebalance back to my neutral allocation of 50% equity, booking the unrealized gains as profit come spring. Or, I might sell into an advancement. Say for every twenty five point gain in the S&P 500 Index I'd sell a sum equal to one percent of my total stock allocation.
Anyway, during these very uncertain times I've got some thinking to do. In addition, I might do a little buying around the edges should stocks continue to pull back during October. I've got my buy list in hand.
