My adventure in Spain is winding down. Tomorrow I head to Ireland, but last night, my family and I had a taste of an old tradition in Spain — tapas. We found a little bar in the heart of old Palamos that served tapas in the way of old. You walk into the bar and the barrista (usually the owner) hands you a freebie tapa on a plate. You then use that plate to collect tapas of choice that are laid out on the bar. Each has a pick, and when you are done, you pay for the number of picks you have on your plate. This is quite the honor system in a bar full of people.
This particular Bar, Can de Moni, is classic, as is the owner, Moni. He has been serving tapas and drinks to folks all over the world for over 60 years. He has the pictures on the wall to prove it. Famous Hollywood actresses, actors, politicians, musicians, and other celebrities hang framed on the walls. Moni himself is quite gregarious, greeting every customer as each comes in. His loud voice and warm laugh fill the room, along with classic American music. We all laughed, ate, conversed with international folks and just had a good old time …
Sell in May and go away. It’s a well-worn trading chestnut that drives fancy fundamental analysts nuts. It’s such a cliche’. But, at least for the last two years, it’s been so right. In both 2010 and 2011 stocks started strong and lost steam towards the second-half. Selling the Spring rallies in both cases allowed traders to buy stocks back at radically lower levels later in the year.
The above is food for thought. Sometimes history does repeat, but given the manufacturing news that came out yesterday, and the market’s reaction to it, this May just might look different from the last two. Both China and the US came in with unexpectedly good manufacturing numbers, which sends the signal that these economies at least are still on a positive track. Now, if Europe can just get back on track.
Yesterday, the market broke out of the gate strongly, yet the fear of Europe is still lingering. It might be that news from that region will send investors scurrying for the summer. Then again, if we have more news along the line of yesterday’s, this May could break the tradtional and recently historical pattern, just April did last month when it turned out to not be so great a month for the market.
As always, we will see, but I am holding to the notion the market wants to go up, and if Europe can hang tough and get its act together, the market just might get what it wants, no matter what history or tradition tells us about the month of May.
Trade in the day; Invest In Your Life…
