Before You "Sell in May and Go Away," Here's Why You Should Think Again
If you've been in or around the market for a while, you've likely heard the adage "sell in May and go away." It's advice rooted in the idea that so little happens between the beginning of May and the end of September that you may as well sit these months out. And, there's a bit of mathematical support for the premise. On average, the summer and early fall months are lethargic ones for the market.
Be careful about blindly following the well-intended tip, however. Sure, the average returns during this period could be better. But a few really, really rough summers for stocks are weighing down what's otherwise a bullish time of year.
The S&P 500 gains -- on average -- about two-thirds of a percent between the end of April and the end of September. Any gain is always better than any loss. But, let's face it, that's nothing to write home about.
Source Fool.com
