There is a popular saying that investors like to say “Sell in May and Go Away”.

After a while, people infer that this means if you sell your portfolio in May and move to risk-free instruments, then come back in October or November, your results are better.

Many wonder how true this is.

There is definitely those periods where May to Nov turned out to be very well. Last year was the most recent that comes to mind. If we missed out on that performance our portfolio value would look different. Another was the run-up after SARs.

But in general… from the evidence that I see, there are some truth to that.

Recently, I came across a few quantitative charts that are pretty interesting. These charts show the seasonality return performance of some various indexes.

The S&P 500 Index Seasonality

Perhaps the most important index in the world is the widely followed S&P 500. The S&P 500 represents some of the largest companies in the world.