“Sell in may and walk away” is an old saying on Wall St. The stock market tends to experience periods of relative under and out performance based on seasonality. From 1897-2008, for example, the average return of the DJIA is 4.6% between November to April, while only averaging 2.5% (Almost half) between the months of May to October.
The chart below illustrates the seasonal selling which usually begins in May. Since 2001, the market has sold off 7 out of 8 times.
This bear market rally is getting long in the tooth with May just around the corner.
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