From Acting Man, by Dimitri Speck
Selling in May, With Precision
If you “sell in May and go away”, you are definitely on the right side of the trend from a statistical perspective: While gains were achieved in the summer months in three of the eleven largest stock markets in the world, they amounted to less than one percent on average. In six countries stocks even exhibited losses! Only in two countries would an investment represent an interesting proposition, as I have shown in the last issue of Seasonal Insights via back-test calculations for the time period 1970 to today.
The perennial stock market question: when is the right time? [PT]
But does it really make sense to sell at the beginning of May and buy one’s position back again after six months? After all, it seems a bit strange to assume that stock market behavior will adhere precisely…
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