XOM - Sell Alert: 2 Dividend Stocks To Sell In May And Go Away

2024-05-24 11:03:44 ET

Summary

• The "Sell in May and go away" adage suggests selling stocks in May and returning in November, but historical data shows that June and July have been strong months.
• September is consistently the worst month for the stock market, with unpredictable returns, while November has historically been the best month.
• Selling stocks should be based on valuation rather than following a seasonal strategy, focusing on rotating out of overvalued stocks and into undervalued ones.
• Here are two top dividend stocks which we now suggest selling for profits.

Written by Sam Kovacs.

Introduction: Does Selling in May make sense?

"Sell in May and go away."

This Wall Street adage, with roots going back to 18th century England, has somehow endured the test of time. I've always been fascinated by these seasonal shifts and trends in the market.

The original phrase was "Sell in May and go away and come back on St. Leger's day." St. Leger's day usually lands somewhere in the middle of September. The idea was that British investors should sell their shares to enjoy a summer of stress-free leisure before coming back to their investments in September.

While I was born in the UK, this notion seems so foreign to me, as in the past 4 years, I've taken a 10-day break for my wedding, two short 4 day breaks, and that is it. How is one expected to enjoy the summer if the fun and thrill of stock markets is stripped from him? Maybe others don't think like I do, and this would show in the data....

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