Salient to Investors:
Mateo Blumer at Flohr Asset Mgmt writes:
- Sell in May and go away is given credence by several historical trends. The stock market performs far better during the 6-month period from November through April than it does from May through October.
- Investing in the Dow Jones on May 1 and selling it on October 31 each year since 1950 would have lost money as of 2011, with 25 down years out of 62, 11 of which by more than 10%.
- Investing $10,000 on November 1 and selling it on April 30 for every year since 1950 would have returned an average annual rate of 7.1%, with only 13 down years, 3 of which by more than 10%.
- From 1926-2004, September and October had the lowest average returns.
Read the full article at http://seekingalpha.com/article/596821-market-seasonality-capitalizing-upon-summer-decline