Sell in May?

While the market maxim says to “sell in May,” since 1945, the S&P 500’s median performance during May has been a gain of 1.0% with positive returns 60% of the time. In years when the S&P 500 has been up year-to-date (YTD) through April (like this year), its median performance in May has been a gain of 1.2% with gains 67% of the time. (Source: Bespoke)

Through 4/26, the S&P 500’s average change the day after a down day this year was a gain of 0.27%. Since 1945, in the six other years that the S&P 500 rallied an average of 0.25% the day after a down day during the first four months of the year, the median rest of year performance was a gain of 14.92% with positive returns all six times.

We at, E2E Financial, recommend you stay away from market maxims and stick to a great long term investment strategy that matches your risk tolerance and your time frame. Need a second opinion? Sign up for your free portfolio assessment.

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