A well-known trading adage that warns investors to sell their holdings in May to avoid a seasonal decline in equity markets. While March and April are normally positive months for Australian equities, May and June are the two worst months of the year, with an average fall of more than 5 per cent in the past 10 years. In the U.S. almost all of the market's yearly return since 1960 comes in the beginning and end of the year with a flat middle six months. May through October has underperformed the other months of the year 70% of the time. Chart Source: Nautilus Research
Please sign in to comment on this wire.