You might have heard about the famous saying in the stock market that goes:
“Sell in May and go away.”
With May fast approaching, are you wondering if you really should sell in May and take a break from the stock market?
We’ve got ya covered, mate!
What’s “Sell in May and Go Away” All About?
The famous adage states that we should sell stocks at the start of the warm weather in May and reinvest only when the cold weather starts in November (the “summer” months).
Investors have a belief that when the warm weather begins, the lack of market participants (probably due to vacation breaks) can make for a lacklustre market period.
On the contrary, the months between Halloween and May Day (the “winter” months) produce better stock market results.
The chart below shows the “sell in May and go away” strategy seems to work,