- The Big Picture - http://www.ritholtz.com/blog -
Chart of the Week: Sell in May . . .
Posted By Barry Ritholtz On May 5, 2005 @ 10:38 am In Investing,Markets | Comments Disabled
CotD  observes "The stock market has entered
what has historically been the weakest half of the year. Today’s chart
illustrates that investing in the S&P 500 during the six months of November
through April accounted for the vast majority of S&P 500 gains since 1950. "
click for larger graphic
Source: Chart of the Day 
"While the May through October period has seen mild gains during major bull
markets (i.e. 1950-56 & 1982-97), the overall out performance during the
months of November through April is nevertheless compelling. Hence the saying,
“sell in May and walk away.”
Note however, that "Selling in May" has not worked in each of
the past two years. As we mentioned previously, I am looking for a
tradable low somewhere in the June/July time frame.
Quote of the Day:
This is one of the peculiarly dangerous months to speculate in stocks. The
others are July, January, September, April, November, May, March, June,
December, August and February."
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/05/chart-of-the-week-sell-in-may/
URLs in this post:
 CotD: http://www.chartoftheday.com/20050504.htm?t
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/sell_in_may_20050504.gif
 The Market wisdom that comes with age : http://www.marketwatch.com/news/story.asp?dist=¶m=archive&siteid=mktw&guid=%7BD80DDA6E%2D79D5%2D4D94%2D83E3%2D5CD7CA5D2DA8%7D
 Is your pension safe? : http://www.oregonlive.com/news/oregonian/index.ssf?/base/front_page/1114854997326240.xml&coll=7
 Attention, Speculators: Here’s a Lesson from Hong Kong’s Housing Bubble: http://knowledge.wharton.upenn.edu/article/1194.cfm
 How oil prices ripple : http://www.ajc.com/news/content/business/0405/05bizoilecon.html
 U.S. unprepared for nuclear terror, experts say: http://www.msnbc.msn.com/id/7701773/
Click Fraud: State of the Industry: http://www.payperclickanalyst.com/content/templates/default.aspx?a=68&z=1
 ‘Side’ Effect: A Movie Quip Throws the Wine World for a Loop: http://www.washingtonpost.com/wp-dyn/articles/A39163-2005Apr9.html
Copyright © 2008 The Big Picture. All rights reserved.