“Sell in May and go away” is one of the most well-known adages on Wall Street. It’s based on historical underperformance over the summer months that usually picks back up in November.
The idea is to sell your stocks in late spring, and then invest again around mid-autumn. And from 1950 to about 2013, the Dow indeed posted lower returns from May to October compared to the November to April period.
But since 2013, things have changed…
And the way it’s been going of late, the 2021 version — before Thursday and Friday’s bump — looks like sell in May and run away.
Simply put, no! And Thursday’s big rebound — which came after I filmed this video — is a good reason why.
But the important thing to know is that, whether you’re a growth stock or crypto or options trader, there are cycles in the market. Stocks go up for some time, stocks go down for some time, and stocks go sideways for some time.
It’s also important — especially to those of you who started trading in the past decade — to understand that markets don’t just go up forever.
What we’re seeing now in 2021 is a big series of rotations. Growth stocks led the way in 2020. And then in early 2021, the “King Makers,” as I call them, rotated out and into the back-to-normal, post-pandemic names.
So why shouldn’t you sell in May and go away this year? Check out my video and we’ll talk stocks and crypto, what comes next and why you should stay in the market.
Also be sure to check your inbox each Monday for my free Alpha Intel Weekly Watchlist. I’ll also send you free trade alerts pulled from my watchlist every couple of weeks just as a thank you for being a reader.
And as always, please like and subscribe to our YouTube channel and podcast, “Smart Money Circle,” where I interview some of the most brilliant minds in the business. You can also follow me on Twitter, and read more of my thoughts on the market at WealthPress and on Forbes, where I’m also a contributor.
P.S. Say Goodbye to ‘Buy and Hold’
We’ve all heard that buy-and-hold strategies are the surest way to make money in the stock market…
But we’re here to tell you that’s simply not true.
In fact, one Wall Street insider just revealed the secret to making triple-digit gains on stocks like Facebook and Apple… in as little as 24 hours.