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Matt's Market Insights

 

The table below is from InvesTech Research and does a fantastic job analyzing the "sell in May and go away" phenomenon. That saying, as outrageous and pervasive as it may be, exists for a reason. Over the long run the performance of the market from May-Oct is notably poorer than the other six months, but that's not a reason to leave the market.

 

The first thing to notice below is how the S&P 500 performs in aggregate during November-April as opposed to May-October. Bolded in the table below, you can see that the average return over the last 24 years for the Nov-Apr period is 7.2%. This contrasts with an average 1.3% gain during May-Oct. So your expectations should be tempered, but the market over the last 24 years has still averaged gains during the May-Oct period. Keep in mind as well that averages do not tell the full story. There are ... Log in or subscribe to continue reading.


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