May Gloom and Doom
May is almost over, and in retrospect, it was a horrible month for the stock market. The issue of the European sovereign debt crisis once again took center stage this month as Greece teetered on the brink of a withdrawal from the EU, France and Germany increasingly squared off on economic recovery plans, and nations such as Spain became increasingly mired in fiscal troubles. In fact, May was such a negative month that the Dow Jones only saw four positive trading days this month, the least number of positive days in the indexes' history. The only month with this few positive trading days, according to the Wall Street Journal, was September 1903, which also had only four positive trading days.
Of course, May isn't over yet. An interesting piece by Bespoke Investment Group shows that "the S&P 500 has historically averaged a gain of 0.68% during Memorial Day week with positive returns 63.4% of the time." This correlation by no means will predict the state of the markets, but it does offer hope that maybe we can end this month on a positive note.