Black Pipper

Forex Dreamers

Is it worth selling shares in May, as popular wisdom says?

Percentage change S&P 500 during the period from May to the end of October. Source: LPL Financial, Bloomberg

Ignoring the adage about the need to sell shares in May and leave the market (“sell in May and go away” – approx. can reward investors, follows from the data of LPL Financial ($ 160 billion under management). The company found that over the past ten years, the US stock market has declined only twice from May to November (in 2015, the decline was completely within the statistical error), and in the remaining eight cases it showed growth.

Last year, the S&P 500 rallied 12.3% over that time frame, a record high since 2009, when the current bull market was in its infancy.

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The S&P 500’s average growth from May to November between 2011 and 2020 was 3.8%, versus an average of 1.7% for the entire time frame since 1950.

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