Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Sell in May and Go Away! Think about it first.
Posted Under: Conceptual Investing
Supporting Image for Blog Post

 

View from the Observation Deck

  1. The old axiom in the stock market about selling your positions at the close of April and then buying back in at the start of November once made sense from a seasonality standpoint.
  2. When the U.S. was more of an industrialized economy it was not uncommon for plants and factories to close for a month or longer in the summer to retool and allow employees to vacation. Closings would obviously be staggered.
  3. The theory was that companies would conduct less commerce in that six-month span, which would translate into lower earnings.
  4. Today, the world is interconnected like never before thanks to globalization. Outsourcing, a hot-button issue just a few years ago, was appealing to most businesses because of cost and the potential for a 24/7, we never close operation.
  5. The three most glaring May-October (2001, 2002 & 2008) periods worth avoiding happened to be in the center of the last two severe bear markets (dot-com bomb & subprime meltdown).
  6. The S&P 500 is currently trading 11.4% below its all-time high of 1565.15 on 10/9/07.
Posted on Friday, April 13, 2012 @ 7:33 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Will the 2016 Summer Olympics Boost the Bovespa?
India's Stock Market Rebounding Despite Stubborn Inflation
Technology Stocks Have More to Give
A Preview of the 2nd Quarter
Managed Care Providers Back on Their Feet after "Obamacare" Knockdown
Job Growth is a Welcome Sight for the Autos
Gold investors are bypassing the miners for the metal
Municipal Bonds Remain an Intriguing Opportunity
The Impact U.S. Refineries Have on Gas Prices
M&A transaction announcements have been rewarded in 2012
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.