{"id":2954,"date":"2016-08-05T07:27:10","date_gmt":"2016-08-05T14:27:10","guid":{"rendered":"http:\/\/financegourmet.com\/blog\/?p=2954"},"modified":"2016-08-05T07:27:11","modified_gmt":"2016-08-05T14:27:11","slug":"sell-may-go-away-2016","status":"publish","type":"post","link":"https:\/\/financegourmet.com\/blog\/investing\/sell-may-go-away-2016\/","title":{"rendered":"Sell In May and Go Away 2016"},"content":{"rendered":"

There are all manner of investing sayings and “wisdom” out there. One of the most common is a little rhyme that goes:<\/p>\n

Sell in May and go away. Don’t come back ’til Labor Day.<\/p><\/blockquote>\n

This saying comes from older days when traders actually needed to be in New York City. So, when they ran for the cooler pastures of their summer homes, the volume of trading would decrease, and the volatility would ramp up. Of course, these days, you can trade from anywhere at any time, and a great deal of the market’s volume is actually made up of computers that don’t care how hot it is outside.<\/p>\n

Does Sell in May and Go Away Actually Work?<\/h2>\n

Pretty much everything works sometimes if it is a Yes\/No question. If you go to Vegas and bet on black, you’ll win eventually. Same thing with betting whether it will or will not rain.<\/p>\n

For 2016, the sell in May and go away strategy isn’t officially over, so it might still end up being correct. But, today, the S&P 500 hit an all time hight, making the strategy a loser, so far at least.<\/p>\n

\"sell<\/a><\/p>\n

In fact, very little of this summer has been a down market when compared to the beginning of May.<\/p>\n

As always, for long term investors, none of this is worthy of paying attention, and frankly even professional day traders don’t follow this adage any longer, but it can be fun to take a look.<\/p>\n

That being said, there are more than a few analysts out there predicting a stock market implosion in the near term. They feel the markets are overvalued and that there are too many possible negative factors out there. Then, again, a lot of them have been saying that for a long time.<\/p>\n

The reality is that the U.S. economy is still moving forward, albeit it not fast or strong. The issue is that everyone else around America seems to be teetering on the verge of potential problems. From too much debt in China, to a still week Greek situation, to a new threat from the whole Brexit thing, there are a lot of things that can go wrong. The question is, will any of those things happen before Labor Day?<\/p>\n

If not, then\u00a0Sell in May and Go Away\u00a0<\/em>is wrong for 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are all manner of investing sayings and “wisdom” out there. One of the most common is a little rhyme that goes: Sell in May and go away. Don’t come back ’til Labor Day. This saying comes from older days when traders actually needed to be in New York City. So, when they ran for the cooler pastures of their summer homes, the volume of trading would decrease, and the volatility would ramp up. Of course, these days, you can trade from anywhere at any time, and a great deal of the market’s volume is actually made up of computers that don’t care how hot it is outside. Does Sell in May and Go Away Actually Work? Pretty much everything works sometimes if it is a Yes\/No question. If you go to Vegas and bet on black, you’ll win eventually. Same thing with betting whether it will or will not rain. For 2016, the sell in May and go away strategy isn’t officially over, so it might still end up being correct. But, today, the S&P 500 hit an all time hight, making the strategy a loser, so far at least. In fact, very little of this summer has been … <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":2955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[661,299,502,509],"class_list":["post-2954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-investing","tag-investments","tag-stock-market","tag-stocks","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/posts\/2954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/comments?post=2954"}],"version-history":[{"count":0,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/posts\/2954\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/media\/2955"}],"wp:attachment":[{"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/media?parent=2954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/categories?post=2954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financegourmet.com\/blog\/wp-json\/wp\/v2\/tags?post=2954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}