Great set of charts from The Chart Store showing the performance for the month of May going back to 1928:


Click to enlarge:




More charts after the jump




Category: Cycles, Markets

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5 Responses to “Sell in May?”

  1. [...] More views of Sell in May.  (Big Picture) [...]

  2. machinehead says:

    Unfortunately, the annual volatility range of stocks (even plus or minus one standard deviation is more than a 30 percent range) completely swamps the small variations in monthly averages, by more than an order of magnitude.

    Consequently, while differences in average monthly performance make good copy for almanacs and such, practical ways to incorporate this information profitably into a real world investment model are hard to find.

    Holding during April-November and exiting during May-October is the only effective method I’ve heard of. But it’s disturbing that there’s really no satisfactory explanation of why it works.

  3. [...] done by The Big Picture, a blog run by strategist Barry Ritholtz, CEO and Director of Equity Research at Fusion IQ, an [...]