CHART OF THE DAY: 'Sell In May And Go Away'
One of the oldest "rules" on Wall Street is "sell in May and go away."
Based on some rough historical observations, someone decided that it might be a great idea to stay out of the stock market between May and some time in the fall.
FBN Securities J.C. O'Hara ran the numbers for the past 20 years and charted the returns.
"The majority of the time the market was unimpressive over those summer months," he said. "The majority of the markets returns were housed in the first model that was long the months into May and the months after Sept."
Of course, history is at best a guide, not gospel.
"As we approach May we are not in the SELL camp yet, but rather acknowledge the fact that a volatile, sideways moving market is what history implies," said O'Hara.
FBN Securities
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status