Investment wisdom which is also suitable to a crocheted wall-hanging won’t generally make you rich: Markets are far too sophisticated and far too beholden to the vagaries of the news cycle to kowtow to a six-word ditty. But over the years, and all indications are that this year, the popular adage that an amateur investor should “sell in May and walk away” begins to look as though it just might mark a crucial exception.
This article explores the provenance of the saying, its conformity to long-term and recent historical patterns of return, and then points its focus forward to the issue of why this year, more even than most, it might not be such a bad idea to take your grandfather’s broker at his word. The entire article should take about fifteen minutes to read. Our next article will explore just what it might mean, this year in particular, to “walk away.”… Continue reading