Sell in May and go away? Not so fast

There are certain givens in the financial-writing business. As April showers recede and May flowers spring to life, we are told to "sell in May and go away." The implication is that, historically, investors have not been rewarded for taking on equity market risk during the June-to-October...

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Bibliographic Details
Published in:Journal of Financial Planning 2003-07, Vol.16 (7), p.22
Main Author: Riepe, Mark W
Format: Article
Language:English
Subjects:
Investment policy
Investments
Rates of return
Seasons
Securities markets
Stock exchanges
Online Access:Get full text
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Summary:There are certain givens in the financial-writing business. As April showers recede and May flowers spring to life, we are told to "sell in May and go away." The implication is that, historically, investors have not been rewarded for taking on equity market risk during the June-to-October period. It is a neat story, but it does not hold up under closer scrutiny. Closer examination of the specific results suggest that attractive results are, in fact, driven by just a few poor summers. The lesson? A disciplined strategy of investing in the stock market probably offers a better chance of helping you meet your long-term goals than any seasonal, market-timing strategy ever could.
ISSN:1040-3981