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Don't Sell In May: Stock Market's Momentum May Prove The Old Adage Wrong This Year: Text & Video

TedTed
in Fund Discussions
FYI: Since 1950, the S&P 500 has performed even better during the summer months when it begins May in an uptrend, according to data compiled by analysts at Strategas.
Regards,
Ted
http://www.cnbc.com/2017/05/01/dont-sell-in-may-stock-markets-momentum-may-prove-the-old-adage-wrong-this-year.html

Comments

  • brbrock
    I know for a fact this same recommendation was made last year by some reputable source. Perhaps posted here?? I suspect you can find it every year.
  • rforno

    Here we go again.

    Sell in May! Hold steady in May! Sell in May! Hold!

    Blah .... stick to your plan, think for yourself, avoid the bubblegum financepr0n advice, and profit!
  • Old_Skeet
    edited May 2017
    For me, the "Sell in May" strategy has worked more times than not. I have never sold competely out of equities but generally sell down certain equity holdings and then redeploy the money somewhere in the equity structure come late summer or early fall that I believe provides good opportunity. During the month of April the barometer indicated certain elements of the S&P 500 Index that the barometer tracks were in decline (going soft). Corporate Earnings was not one of them but both the breath and technical strength indicators indicated some softness was developing. I'm thinking this will soon show up with a decline in the Index's price unless these indicators reverse. This is the big reason I average in and out of the "Sell in May" strategy and don't go all in (or out) based upon the calendar alone. Currently, the barometer indicates that the Index is just barely in fair value territory with a reading of 146 as of Monday's May 1st close; but, extended. I have been in a gradual equity reduction mode since mid March.

    My market barometer provides information that assist me in both my exit (Where I reduce my allocation to equities.) and entry back into the market (Where I raise my allocation to equities).

    And, so it goes. To each, their own way.

    I wish all ... "Good Investing."

    Old_Skeet

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