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Sell in May?

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May 04, 2012 – Comments (9)

I keep seeing posts urging ppl NOT to sell in May.

Might this be a plot to keep the suckers in until after the smart money gets out?

9 Comments – Post Your Own

#1) On May 04, 2012 at 11:20 AM, mtf00l (43.89) wrote:

Ha ha

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#2) On May 04, 2012 at 11:33 AM, leohaas (36.87) wrote:

If you think that, then go ahead and sell!

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#3) On May 04, 2012 at 12:22 PM, valuemoney (99.99) wrote:

Look at historic data for each month. Decide for yourself. On average I think the market goes up but it just depends on what is going on. Good luck trying to time the market. If you sell in May when do you get back in? lol....My thinking is buy a great company at a good or great price and HOLD it until you think it is over valued and not trade it in the mean time. The company you buy doesnt change come May or any other month for that matter. It might change but it isn't because it is a certain month.

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#4) On May 04, 2012 at 2:37 PM, IBDvalueinvestin (99.63) wrote:

valuemoney for someone with a name as yours, you sure are giving bad advice. 

When the market goesin down mode, it does not matter which stock you get into. The vast majority will go down and trying to pick the one that will go up is like finding a flower in the middle of the desert.

You can switch from equities to Bonds to avoid losing $$$ while the market corrects and correct it will and rather quickly.

Sure you may not be able to time the market perfectly but its better than losing -15% to -20% staying idle. 

Just keep this in mind, when market corrects , stocks tend to go down at a much higher percentage than when they go down because its much easier to get people to sell then it is to get people to buy shares.

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#5) On May 04, 2012 at 2:40 PM, IBDvalueinvestin (99.63) wrote:

Correction :

 Just keep this in mind, when market corrects , stocks tend to go down at a much higher percentage than when they go up because its much easier to get people to sell then it is to get people to buy shares.

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#6) On May 04, 2012 at 2:49 PM, Momentum21 (96.80) wrote:

IBD - you have a set of stones to call someone out for bad advice. : ) 

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#7) On May 05, 2012 at 11:20 AM, edwjm (99.86) wrote:

I posed a question to see what kind of reactions I would get.  They have been interesting.  Valuemoney is correct with his last sentence: "It might change but it isn't because it is a certain month." but otherwise I think IBDvalueinvestin gave far better advice.   I also recommend reading his/her recent posts for some very good information.  And, no, I am not associated with him/her in any way.

These are uncertain times and each investor needs to asses how at risk he/she is and how much risk he/she should be taking.  There are may reasons that an individual investor might be well advised to lighten up on high risk equities.  A constant chorus of "stay the course" may not be the best advice in markets as risky as they are now whether it is May or some other month.  The political situation in the USA is dangerous and in many other countries even more dangerous.  The possibility of a steep drop in stock prices mentioned by IBDvalueinvestin is very real and, as he/she points out, might be very dramatic.

CAVEAT INVESTOR!

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#8) On May 07, 2012 at 9:15 PM, rhallbick (99.71) wrote:

"sell in May and go away"

A century ago, they did actually go away.  Successful brokers and speculators would board a luxury ocean liner and head off for Europe for two or three months.  The wealthy industrialists had their private resorts on the southeastern US coast where they would head off to spend the summer.

Today, it's the various fund companies that move the markets, but the pattern has stayed pretty much the same I think.  I opine that it's a psychological effect that tends to repeat annually; starting with a renewed optimism that starts to develop around November that next year will be better.

Should you sell or hold?  That depends.  Are you talking about those Coke shares you bought thirty years ago or that Internet software company with the negative P/E? 

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#9) On May 14, 2012 at 10:20 AM, edwjm (99.86) wrote:

The month is almost half over.  If you stayed in, are you glad?

Rhallbick:  Interesting post and of course one should not sell coke bought 30 yrs ago.

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