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Sell in May and Go Away???

“Sell in May and go away” adage or also widely know as Halloween indicator, is the belief that the period from November to April has significantly stronger growth on average than the other months.

In such strategies, stocks are sold at the start of May and the proceeds held in bonds or a deposit account. Stocks are bought again in November, typically around Halloween.

How true is this to our stock market? The table below shows the historical data since 1988.

 

 
From historical data, we can see that it does has impact. What do you think about this year?

My personal opinion, it does not much effect for long term investors unless for those who opt for short term capital gain or it affects your particular stocks. Hence sell or stay? It’s your choice!

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May 6, 2010 Posted by | Uncategorized | Leave a comment