Core Value Equity Investment Strategy
As we prepare to close out the second quarter of 2011, the old adage “Sell in May and Go Away” is shaping up to be prophetic once again. Since 1928, the S&P 500 has averaged a gain of 5% from November 1 through April 30, compared with a gain of less than 2% from May 1 through October 31. It should be noted, however, that since 1928, the equity market has recorded double-digit losses during the summer periods only 13 times, or about 15% of periods. The seasonally soft summer months may therefore be a period to be cautious, but they do not present a good reason for selling all of one’s stock holdings as the adage suggests.