As April comes to a close, investors are again wondering whether to “sell in May and go away”
Investors will also be hearing a lot about the Dow’s new “Golden Cross”
Our conclusion is that signals are mixed and now is not the time to take on undue risk.
As most readers know, I always title my reports with a fitting song title. Sadly, this year I’ve opted to choose one to honor a fallen music legend, like David Bowie and Glen Frey. This week, it’s an ode to the late-great Prince—a life gone too soon.
Back to business
We are in that “season” when you will hear a lot about whether it’s appropriate this year to “sell in May and go away,” which is one of the most time-honored market adages, and for good reason. Since 1950, nearly all of the S&P 500’s gains have occurred between October and April. As you’ll see detailed in the tables below, the mean return since 1950 for the S&P 500 during May through October was 1.3%; while for November through April it was 7.1%.