President Trump began his term by abandoning the Transpacific Trade Agreement, angering many of our allies. By threatening to impose steel and aluminum tariffs, he has further distanced himself from our allies when he needs them. Now he finds himself isolated in the trade talks with China, when he needs the support of other countries ... … [Read more...] about Op-Ed: Sell in May and go away?
Sell in may and go away
Share This Story! Let friends in your social network know what you are reading about Facebook Email Twitter Google+ LinkedIn Pinterest 'Buy-and-hold' strategy beats ‘sell in May and go away’ trading slogan, report claims Before you sell your stocks because May has arrived, consider this: Fresh research shows a buy-and-hold strategy will deliver bigger returns over time. Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. Join the Nation's Conversation To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Adam Shell, USA TODAY Published 6:00 a.m. ET May 2, 2018 CONNECT TWEET LINKEDIN COMMENT EMAIL MORE Thinking about dodging the worst six-month stretch for stocks by following the Wall Street trading slogan “Sell in May and go away?” Before you sell everything, consider this: Fresh research shows a … [Read more...] about ‘Buy-and-hold’ strategy beats ‘sell in May and go away’ trading slogan, report claims
When it comes to how to invest in the stock market, it would be a lot easier if you could simply rely on cliches like "sell in May and go away." But as the general market and leading stocks like Nvidia (NVDA), Amazon.com (AMZN) and Adobe (ADBE) have proved in recent years, that can be a strategy for missing, instead of capturing, some big gains. X As with most sayings that have stuck around for decades, there is an element of truth to the "sell in May" maxim. This year, the old axiom may or may not prove prescient, given the age of the current bull cycle and the rise in volatility we've seen this year. But that's speculation, not strategy. And even if "sell in May and go away" were a reliable rule, what's the foolproof saying that tells you when it's time to get back in? And what happens if the market falls apart in April? Should you just hang out — and suffer losses — until you start getting invitations to Cinco de Mayo parties? How To Invest: … [Read more...] about Should You Really Sell In May And Go Away? Ask Amazon, Nvidia
Last Updated May 24, 2010 11:20 AM EDT It's an old investment legend like the January Effect and the Santa Claus Rally. The theory is that you should sell stocks at the beginning of May and then buy them back at the end of October. Follow this strategy, so the legend goes, and you'll reap profits beyond what the average buy-and-hold investor will receive. Just like most other investment legends, this is one that's much more myth than fact, and seems to be impossible to kill off. To test this theory, we created two portfolios. One buys the S&P 500 Index on Jan. 1, 1926 and holds that position. The other buys the S&P 500 on January 1, 1926, and holds that position through April 30, 1926. On May 1, we swap the S&P 500 with 30-day U.S. Treasury bills and remain in T-bills until Nov. 1. Then, we trade back into the S&P 500. This process is repeated every May and November, ultimately ending with data from April 2010. The results tell the story -- if you had followed this … [Read more...] about Why the “Sell in May” Strategy Is Bogus
Last Updated May 25, 2010 9:23 AM EDT Yesterday, we looked at why the "Sell in May and Go Away" strategy doesn't hold up. Here's some further evidence on how the data can be manipulated to look like it works and why you still shouldn't follow such a strategy. When we looked at the historical data yesterday, we examined the longest period available (as that's usually the most meaningful). We can also examine the results of the "Sell in May and Go Away" strategy for various other periods. (As with yesterday, the Buy & Hold portfolio is invested in the S&P 500 Index throughout the time period. The Sell in May portfolio is invested in the S&P 500 from November through April and in 30-day Treasury bills May through October. Returns are annualized.) January 1926-April 2010 Buy & Hold -- 9.86 percent January 1950-April 2010 Buy & Hold -- 11.11 percent January 1960-April 2010 Buy & Hold -- 9.54 percent January 1970-April 2010 Buy & Hold -- 9.97 percent January … [Read more...] about Another Look at Why the “Sell in May” Strategy Fails
(MoneyWatch) One of the more persistent myths about investing is the "sell in may" strategy. The idea is simple: Stocks perform better during November through April than May through October, so you should sell your stocks at the beginning of May and buy them back at the beginning of November. However, investment results this year showed yet again why that's a bad strategy. On April 30, 2012, the Standard & Poor's 500 Index closed at 1,397 (adjusted for dividends and splits). On Oct. 31, it closed at 1,412 for a gain of 1.1 percent. In the four years since the financial crash of 2008, this is the third when the S&P 500 produced positive returns for the period, with an average gain of 3.7 percent (The exception was 2011, when the index registered a loss of 7.1 percent.) By comparison, over the same period putting your money into one-month Treasuries would have paid 0.04 percent. Another look at why the "sell in May" strategy fails For investors, "buy local" isn't a good strategy … [Read more...] about How the “sell in May” strategy fared in 2012
(MoneyWatch) As the calendar approaches May 1, you're sure to hear about the old investment legend that you'll get better returns if you sell stocks at the beginning of May and buy them back at the end of October. It's right up there with the "January Effect" (which never existed in any implementable way) and the "Santa Claus Rally." As you'll see, like most other investment legends, this is one has just enough truth to it to maintain the legend. The thinking behind the "sell in May and go away" strategy is that your portfolio will have higher returns if invested in stocks from November through April (as opposed to the entire year) because they've had higher returns during those months than May through October. Research reputations can be misleadingShort selling: Evil or necessary evil? How to avoid selling stocks at the wrong time It is in fact true that stocks have higher returns from November through April. Going back to 1926, the average monthly return for May, June, July, August, … [Read more...] about Sell in May: It’s the silly season again
There is a popular saying among investors that you should sell stocks in May and then stay out of the market through October. Mark Hulbert wrote a piece in MarketWatch recently noting that stocks have turned in their best results between Halloween and May Day. Since 1896, the Dow Jones Industrial Average has returned an average of 5.2 percent during the winter months and only 1.7 percent during the summer. While this is an interesting set of numbers, statistics are often misused. I examined the stay away in May strategy last year and advised against it, though not because I knew how stocks would perform. I believe that moving in and out of the stock market is likely to result in lower returns. I think investors benefit from a more consistent approach that includes regular rebalancing of an asset allocation mix that is appropriate for their goals. And I urge investors not to underestimate the tax consequences that result from too much trading. Let's look at a near-term example: … [Read more...] about Should you sell in May and go away?
U.S. equities moved lower on Friday as first-quarter earnings remain in focus and investors prepare for the start of a period of seasonal weakness in the market. This time of year, it's impossible not to hear about "sell in May and go away." Also weighing on sentiment was some softness in crude oil and lingering worries about a very weak GDP growth report on Thursday. In the end, the Dow Jones industrials index closed down on Friday by 57 points at 17,773 -- continuing a long sideways crawl going back to 2014 that coincided with both the end of the Federal Reserve's QE3 bond-buying program and a peak in corporate profits. Overall, the current blended S&P 500 first-quarter earnings growth rate is -7.6 percent as seven of 10 major sector groups are suffering a decline in profitability, with more than 60 percent of the companies in the S&P 500 reporting results. On the economic front, the April Michigan consumer sentiment report came in at its weakest reading since September as … [Read more...] about ”Sell in May” has some extra oomph this year
Some aphorisms have the tenacity of overly used clichés. One of them is the Wall Street adage "Sell in May and go away," probably the most widely repeated saying in the marketplace at this time of year -- thanks to the The Stock Traders Almanac, which introduced it decades ago. What it means specifically is for investors to sell their stock holdings in May and buy them back at the end of October. That's because since 1945, the S&P 500 rose in price an average of 6.6 percent from November through April but gained only 1.4 percent from May through October, noted Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence. But the better rule may be to buy the fundamentally sound stocks that hasty investors are selling in May, presumably at reduced prices, and profit from them when they bounce back by October's end as they resume their expected rise. Investors who do this could either sell them at huge profits or simply hold the stocks purchased at bargain prices. … [Read more...] about Sell in May and go away? No way! Do this instead