Sell in May and Go Away

Posted in: Economics, Stock Market, Thought of the Week

There’s an old saying in equities, “Sell in May and go away,” which refers to the tendency for large money managers to sell equities in early May and then return in the fall. However, if you performed this strategy from May until Labor Day in 2012, you would have missed out on a strong rally. Despite this strategy failing last year, our investment committee believes we will see a Sell in May event again this year.

In the short term, our investment committee does see opportunities to take profits in specific sectors where valuations have run up faster than the market. Read this week’s Thought of the Week to find out how to position your assets at the moment and for more promising opportunities later in the year.

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As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market.  Written by our investment committee at GFPC we find these thoughts to be informative and interesting.

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