COST - Should You Sell In May And Go Away?
2024-05-23 10:28:56 ET
Summary
- Selling in May is not a guaranteed strategy, as May to October historically shows gains, just not as big as November to April.
- Defensive sectors like Health care, Consumer Staples, and Financials have performed better than the S&P 500 average from May through October.
- Sector rotation becomes more important in the May to October period, with Tech and Discretionary taking a breather and Health, Staples, and Financials rising.
- There is another trend neglected by those who advocate "Sell in May and Go Away." This is a presidential election year. Just take a look at those years' performance!
Historically, the period from November to April has shown the best returns. But that doesn't mean that May to October has been down in these 6 months!
In fact, looking back over the past 25 years, the S&P 500 has gained an average of about 2% from May through October. From November through April, it has averaged closer to 7%....
Should You Sell In May And Go Away?