Is Selling In May And Going Away A Shortcut To Profits?

Ted

FYI: I walked across the football field in the dark. It was a shortcut to McDonalds. All I had to do was climb the schoolyard fence and drop deftly to the back of the parking lot. I lowered myself from the fence before plunging into the blackness of an open shed.
That’s when I learned where McDonalds put their deep fried grease. I landed in two giant buckets. I then lost my balance and crashed into a third.
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/is-selling-in-may-and-going-away-a-shortcut-to-profits

Old_Skeet

I have used this strategy for a good number of years with good success and it is a strategy I learned from my late father many years ago. I guess all strategies have their critics by those that fail to scout the route and fully understand them. For me, I reduce my equity allocation during the summer months (usually around May) and then increase it come fall (usually during late October early November) and sometimes during the summer should there be a good pullback.

In fact, I have found, the summer months are a good time to put new portfolio money to work in bond funds for those investors like myself that have, at times, paid a commission on their purchases because fixed income funds can usually be purchased at a lesser commission rate than their equity counter part and they also usually have the better returns during the summer months over stock funds. Come fall, when stocks usually begin to rally, one can then do a net asset value exchange from the bond fund into an equity fund within the same fund family usually with no commission or fee associated with the exchange. In addition, I pay no wrap fee on these accounts.

I guess we now know why the writer of this article fell into the grease continers after climbing the fence in taking his short cut route to McDonalds. He simply failed to scout know and heed to the perils that were associated with his short cut route.