“Sell In May And Walk Away” has always been a popular adage among investors.
But Is It True?
Today’s chart breaks down the performance of the stock market during the strongest cycle (November to April) vs the weakest cycle (May to October).
Via Chart of the Day:
“The stock market is about to enter what has historically been the weakest half of the year.
Today’s chart illustrates that investing in the S&P 500 during the six months of November through and including April accounted for the vast majority of S&P 500 gains since 1950 (see blue line).
While the May through October period has seen mild gains during major bull markets (i.e. 1950-56 & 1982-97), the overall subpar performance during the months of May through October is noteworthy.
Hence the saying, ‘sell in May and walk away.’ ”
Featured Image: Flickr/Scott Beale