“Sell in May and go away,” goes the old Wall Street adage. The general rule is to sell stocks on May 1, hold cash through the summer and into the fall, and then re-enter the stock market on Halloween Day. This certainly has a right ring to it…May and away even rhyme. But what if it has a wrong outcome?
“Waiting until May Day runs the risk of selling at the same time that a large number of other investors are doing the same,” notes Mark Hulbert of Hulbert Financial Digest. Perhaps the right time to sell isn’t May after all. Maybe it’s better to front run the trend and sell in April. But how can we be sure?
“Fortunately, we have real-world data on two attempts to get a jump start on the ‘sell in May and go away’ pattern. The first is the ‘Almanac Investor Newsletter,’ edited by Jeffrey Hirsch, and the other is Sy Harding’s ‘Street Smart (Read More....)
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