Study: sell in May and go Away isn't as bad as you think

Discussion in 'Stocks' started by Troy Bombardia, May 4, 2018.

  1. There's 2 ways of looking at "sell in May and go away".

    1. You can look at all the years in the past. The odds of the market going up vs. down are 50-50. "sell in May and go away" isn't consistently bearihs
    2. You can look at all these cases in which the stock market first fell from January - April. Same result. May-September not consistently bearish

    https://bullmarkets.co/study-sell-in-may-and-go-away-when-stocks-are-down-ytd/
     
    viruscore1 likes this.
  2. ...Sell in May and go Away...people love silly, rhyming words and ideologies -- But best to leave the rhymes to rap songs and poems.
    The more you say it...it can just be a self-fulfilling prophecy.

    Sell in May and go away is irrelevant, anyways, to traders. Traders can make money everyday, in any market condition.
    That saying is mainly for investors and sleepy macro mutual fund managers who basically only hold long the S&P.
     
    Last edited: May 4, 2018
  3. You mean experienced / competent traders can make money everyday. That's probably about 5% of all traders out there?
     
  4. Probably. Every trader strives to be one of those.
     
  5. "Sell in May and go away" is a notion for theme players. Doesn't apply to traders.
     
    trader99 likes this.
  6. They say it's 50 / 50, but there's always a sell off in may. The guy was just saying that it's just a fun rhyme on cnbc. I wouldn't want him as my advisor...
     
  7. tomorton

    tomorton

    Do you know what the other half of the rhyme is?

    Knowing this, perhaps this cliché "strategy" works better?............