Does the 'Sell in May, Go Away' Strategy Still Apply in Today's Market?

The 'Sell in May, Go Away' Axiom

• 💡 The investment adage "Sell in May, Go away" suggests avoiding US equities from May to October due to historically lower returns.
• 📊 Historically, this period has yielded an average gain of 1.8%, with positive returns occurring 65% of the time between 1960 and 1987.

Market Shifts and Strategy Evolution

• ⚠️ Following the 1987 market crash, a shift occurred, making a fully invested strategy more advantageous.
• 📈 Since then, staying invested through the summer months has generally been a more successful approach.
• 📈 Recent performance shows that May returns have averaged 1.1% since 2013, with positive results in 11 out of 12 years.

Current Market Climate

• 📉 The current market is heavily influenced by policy headlines, making it deviate from traditional patterns.
• ⚠️ Lingering economic uncertainty, fragile technicals, and geopolitical factors like US-China trade talks suggest not to step aside solely based on the calendar.
• 🎯 Strategists indicate that the current climate does not fit the usual patterns for the "Sell in May, Go Away" strategy.