"Sometimes you win, often you don’t"by Andy Davis / April 13, 2017 / Leave a comment
Published in May 2017 issue of Prospect Magazine
At about this time every year, the stock market adage “sell in May and go away” returns to haunt us, counselling investors to get out of the market while the weather is fine and there’s fun to be had elsewhere. They should not return until St Leger Day in mid-September, the ditty continues, thereby ensuring a satisfying rhyme to round off this hoary piece of financial advice.
Numerous researchers have examined the validity of the statement but as far as I’m aware have yet to demonstrate its worth as an investment strategy. This is not surprising—if it were that easy to know when to buy and sell, every fund manager would be doing it, particularly if they could guarantee themselves a whole summer off. In fact, if it were that easy we wouldn’t need fund managers at all and they could take the rest of the year off too.