Sell In May
After that 6.7% rally in the ASX 200 in April, it’s a pretty obvious call to say “Sell in May and Go Away”. I have written about this concept every May and have made the comment that the only reason this idiom survives is because it rhymes, so people remember it. I also rather abhor the use of past statistics as a predictor of the future. In the end wherever there are numbers there are statistics and, lazily, many analysts quote these statistical coincidences as predictions when they are in fact, just statistics. Add up the performance of the market every month for a few years and of course one month is the best and one is the worst, but it doesn't mean it will repeat this year.
That aside one of the interesting parts of “Sell in May and go away”...Continue Reading