Sell in May

[Plonky]

Anybody believe in the saying " sell in May and go away" ???. In the past May has not been a great month for the markets.

[doomsdayza]

Is the opposite true if you're in a bear market?

[barry_1]

Yes and yes!

[barry_1]

i might add,as John pointed out,may is usually fine,but june the markets almost always head south...i'm definite going, in the latter part of the month to buy TOP puts,just as insurance.... as the event usually happens very quickly and there is usually no time to scramble!

[DR_1]

for every buyer there is a seller, it just depends on which side you are on.

[chas]

If i remember correctly last year that would have been excellent advice.

[louisg]

If I may ask. What or where is the logic in " sell in May and go away"?

[DST]

Louis, old chap, I know you like to probe the stability of everyone's thinking, but what would you rather recommend?

Buy in April and hope for a thrill?

Sell in June and shoot for the moon?

[barry_1]

i once heard that it originated in America,something to do with their summer time holidays,less traders about.

[louisg]

Hi DST. I would recommend that it's all a load of twaddle. There's as much logic in " Buy in May and go away" as there is in " bet on red because black has come up the last 20 times in a row".

[richardw]

Agreed. Normal market patterns (even if they exist, which they only might because others believe it too) can't possibly be relevant in the turmoil we're surrounded by. I loved reading some writer at the end of October spouting that "traditionally, November is much better than October" and then the market freaked out again.

[barry_1]

of course as the market is so low already it might not be so a severe downturn this year,how ever i have a graph drawn up by none other Martin Spring showing the effect of certain months on share trading....how ever this is already ten years old,so patters might have altered in the mean time....Simon also believes its twaddle and said so in about May last year.there after the market took a terrible knock in June,which some now put down to coincedence!