In the investment world, there is a saying “Sell in May and Go Away”.  May 2019 was no exception, if you had shorted STI index on 30 April and bought it back on 31 May, you would have gained 8% in value.

And this saying seems to have some basis. According to Investopedia, the Dow Jones Industrial Average has had an average return of only 0.3% during the May to October period in the years 1950-2013. In contrast, it had an average gain of 7.5% during the November to April period.

I can’t say I am a believer of this saying but personally, as a long term income investors, if it happens, it may surface good opportunities to accumulate shares of quality companies.

And this is precisely what I had done last month.

The Singapore banks were hit badly. Within a month, the value of their share prices dropped