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Chart of the Week: Sell in May . . .

Posted By Barry Ritholtz On May 5, 2005 @ 10:38 am In Investing,Markets | Comments Disabled

CotD [1] 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

Sell_in_may_20050504 [2]

Source: Chart of the Day [1]

"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.


Random Items:

The Market wisdom that comes with age  [3]

Is your pension safe? [4]

Attention, Speculators: Here’s a Lesson from Hong Kong’s Housing Bubble [5]

How oil prices ripple [6]

U.S. unprepared for nuclear terror, experts say [7]   

Click Fraud: State of the Industry
[8]

‘Side’ Effect: A Movie Quip Throws the Wine World for a Loop [9]


Quote of the Day:

"October.
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."

-Mark Twain


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:

[1] CotD: http://www.chartoftheday.com/20050504.htm?t

[2] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/sell_in_may_20050504.gif

[3] The Market wisdom that comes with age  : http://www.marketwatch.com/news/story.asp?dist=&param=archive&siteid=mktw&guid=%7BD80DDA6E%2D79D5%2D4D94%2D83E3%2D5CD7CA5D2DA8%7D

[4] Is your pension safe? : http://www.oregonlive.com/news/oregonian/index.ssf?/base/front_page/1114854997326240.xml&coll=7

[5] Attention, Speculators: Here’s a Lesson from Hong Kong’s Housing Bubble: http://knowledge.wharton.upenn.edu/article/1194.cfm

[6] How oil prices ripple : http://www.ajc.com/news/content/business/0405/05bizoilecon.html

[7] U.S. unprepared for nuclear terror, experts say: http://www.msnbc.msn.com/id/7701773/

[8]
Click Fraud: State of the Industry: http://www.payperclickanalyst.com/content/templates/default.aspx?a=68&z=1

[9] ‘Side’ Effect: A Movie Quip Throws the Wine World for a Loop: http://www.washingtonpost.com/wp-dyn/articles/A39163-2005Apr9.html

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