5 ETF Strategies To Beat Sell In May And Go Away
Zacks Investment Research | May 01, 2019 10:59PM ET
With the start of May, market pundits are curious whether the old adage “Sell in May and Go Away” will hold true this year. The performance of the stock market has been historically weak during the summer months (May to October) given that seasonality plays a huge role in pushing stocks down during these months.
The adage is however losing significance in recent years. This is especially true given the latest Dow Jones Market Data, which shows that stocks over the six-month span ending October posted comparatively weaker returns in only three of the past five years. In particular, 2017 was a strong year with more than 8% returns in the May-October period, compared with only 2.8% gain from November 2017-April 2018. The period from November 2018-April 2019 produced a return of roughly 8.6%.
Encouraging Market Trends
The major U.S. bourses, especially the S&P 500 and the Nasdaq Composite Index, are hitting new all-time highs lately driven by bouts of upbeat data and better-than-expected earnings, which eased fears of recession (read: Zacks Investment Research
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