Should you “Sell in May and Go Away”? A market strategy analysis
Understanding the “sell in May” strategy
The old stock market adage “sell in May and go away” suggests investors should exit equity positions in May and re-enter the market in November. This strategy is based on the historical observation that markets often underperform during the summer months compared to the winter period (in the northern hemisphere).
With major indices such as the S&P 500, FTSE 100, and Stoxx 50 having already significantly come off their early 2025 record highs, some US indices dropping close to 20% – to bear market territory -, this seasonal strategy is once again receiving attention.
April so far delivered another negative month for major stock indices, primarily due to the announcement of sweeping…
