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Here is an alternate view of this story (ignore my cool aid/comments on the chart). Chart is pretty much self explanatory. S&P was up 14 out of 20 times since 1930 between May-Nov period during the 4th presidential year. Caveat Emptor; 2008 was one of the few years with negative return. Also check this week's commentary by Tom McClellan on this subject. http://www.mcoscillator.com/learning_ce ... _quandary/Al_Dente wrote:
More analyst blabla (this one common info with backtested results: Yale Hirsch, via Schwab’s Market Edge)
“…’Sell in May and go away’ is an old chestnut and a fascinating technical trend…. Discovered by the founding editor of the Stock Trader's Almanac, Yale Hirsch, the strategy suggests that one own stocks from November 1 to April 30 and shun stocks from May 1 to October 31. … the returns earned by utilizing this approach are eye-popping. Since 1950, using the DJIA as the measuring stick, buying on November 1 and selling on April 30 each year would have turned an initial nest egg of $10,000 into more than $500,000. In contrast, buying on May 1 and selling on October 31 of each year resulted in a loss of approximately $500….The trend has held in recent years as well… “