Tuesday, December 4, 2012

How the "sell in May" strategy fared in 2012 | Redux

How the "sell in May" strategy fared in 2012

Excerpt:

(MoneyWatch) One of the more persistent myths about investing is the "sell in may" strategy. The idea is simple: Stocks perform better during November through April than May through October, so you should sell your stocks at the beginning of May and buy them back at the beginning of November. However, investment results this year showed yet again why that's a bad strategy. On April 30, 2012, the Standard & Poor's 500 Index closed at 1,397 (adjusted for dividends and splits). On Oct. 31, it closed at 1,412 for a gain of 1. 1 percent. In the four years since the financial crash of 2008, this is the third when the S&P 500 produced positive returns for the period, with an average gain of 3. 7 percent (The exception was 2011, when the index registered a loss of 7. 1 percent.

People:

Kevin Grogan

Overall Sentiment: 0

Relevance: 0.326748

Additional Info:

FinancialMarketIndex: S&P 500

Overall Sentiment: 0.323976

Relevance: 0.85991

FinancialMarketIndex: Standard & Poor's 500 Index

Overall Sentiment: -0.0901712

Relevance: 0.527014

FieldTerminology: Stocks

Overall Sentiment: 0.0520423

Relevance: 0.461348

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