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FYI: The “sell in May and go away” strategy is one of the Wall Street myths that persists despite the evidence that shows there is no foundation for believing it. My colleague at Buckingham Strategic Wealth, Dan Campbell, takes a deep dive into the strategy and shines on it the light of truth. Regards, Ted https://www.etf.com/sections/index-investor-corner/swedroe-why-sell-may-doesnt-work
The article leaves me wanting more. How about comparing to 6 month treasuries or one year treasuries or bond index fund. Also instead of using may 1 how about comparing to picking the 15th or the best day in any given year/ anymaybe the best strategy would be to sell the s+p 500 and owna balanced fund for the period. .
Read about the "Sell in May" strategy directly from Stock Trader Alamac.
After reading one can decide for themselves if the strategy might be for them.
I have used the strategy in the past and found that it worked, for me, more times than not. I did not employ the strategy this past year as I have moved away from actively engaging the market myself although I still do invest in funds that do.
Currently, I am in the process of reducing equities and raising my exposure to both cash and bonds due to an age based rebalance now being 70+ years of age. And, it does seem to me with the high frequency trading systems now in place the markets are not as seasonal as they were in the past and are now more driven by news.
Comments
anymaybe the best strategy would be to sell the s+p 500 and owna balanced fund for the period. .
After reading one can decide for themselves if the strategy might be for them.
I have used the strategy in the past and found that it worked, for me, more times than not. I did not employ the strategy this past year as I have moved away from actively engaging the market myself although I still do invest in funds that do.
Currently, I am in the process of reducing equities and raising my exposure to both cash and bonds due to an age based rebalance now being 70+ years of age. And, it does seem to me with the high frequency trading systems now in place the markets are not as seasonal as they were in the past and are now more driven by news.
https://www.stocktradersalmanac.com/Strategy.aspx