You’ve heard the “Sell in May…blah blah blah” before, but there appears to be some truth in that old market saying. Trading during the summer months can be incredibly frustrating due to the lack of volume and sometimes the best thing you can do is take some time off from the markets.
While the statistical average results for these two periods are quite compelling, trying to ride the market in real-time in hopes of capturing these results is not always as easy as it sounds. Below are one-year charts that begin on May 1, and end on April 30, covering the last four years. The left half of the chart shows the unfavorable May through October period and the right half shows the favorable November through April period. The green line shows the beginning of the favorable period, the red line the beginning of the unfavorable period.
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