April 30, 2012
– Comments (5) |
RELATED TICKERS: SPY
Should You Sell in May? Read This First.
Did you assume investment in bonds (T-bills? broad index?) or cash in May through October? Your article does not say.
You're right that I didn't say so explicitly, but I implied it in saying that I was addressing the shortcomings of the NDR methodology, one of which is that " it assumes that when the money isn't invested in stocks, it earns no return whatsoever instead of being invested in Treasury bills."
To be clear: I assume that the money is invested in T-bills when not invested in stocks.
Thanks, I missed that.
Interesting article. I think seasonality isn't strong enough to be a primary investment criterion but it can play a supporting role.
Another interesting article Alex.
My strategy is buy cheap, buy even cheaper if the May - October drop off is real, then sell some if the Nov - April run up comes into play.
Or, just watch the individual company and forget about the "changing of the seasons".
Thanks for taking the time to do the research.
Thanks for your interest. Your comments ring true -- whether one is a stockpicker or an asset allocator, valuation discipline is the linchpin all of intelligent investing.