Well what are your chances of losing in may if the trend continues or if you are a trend follower? 80% chance the market will fall if you use the last 10 years as the market has been up 2 years and down 8. This to me is pretty significant and shouldn't be ignored specially if you have a weak stomach for losses.. Here is a chart on the returns..http://www.chartingstocks.net/2010/05/sell-in-may-and-go-away-2010/ The only thing I really notice is that the two times the market appreciated were after having horrendous months prior to May and thus it was in the mends... This year has been good so it may be one of th 8 years where it goes down.. Good luck and good investing..
Here is my last year's article..http://www.insomniacinvestors.com/2010/05/has-sell-and-may-and-go-away-begun.html May ended significantly down in 2010 and continued the trend for May.
and here is an article on the total returns for the market during all months.. The trend doesn't lie but doesn't predict the future also..
http://www.investmentpostcards.com/2009/04/29/sell-in-may-and-go-away-fact-or-fallacy/
Here is my last year's article..http://www.insomniacinvestors.com/2010/05/has-sell-and-may-and-go-away-begun.html May ended significantly down in 2010 and continued the trend for May.
and here is an article on the total returns for the market during all months.. The trend doesn't lie but doesn't predict the future also..
http://www.investmentpostcards.com/2009/04/29/sell-in-may-and-go-away-fact-or-fallacy/

May is definitely a good month to take profits and reinvest after the correction. Great Article!!
ReplyDeleteWell it looks like the trend is going to continue.. Only a few days more to go.. I have been away..
ReplyDelete