After closing at an all-time high in April, the stock market saw a big sell-off on May 1.
Once again, traders were asking themselves if they should “Sell in May and go away.”
This old stock market rule was coined because there is actually some strong historical data to back it up.
Walter Zimmerman, the top technical analyst at United-ICAP, charted the performance of a $10,000 investment in 1950 if you sold in May, and then bought back on November 1.
“The other half of the proverb is ‘Buy Back on Saint Crispin’s Day,'” said Zimmerman. “That would be 25th October.”
“This advice has shined the brightest in those years with the most extreme bullish sentiment going into May.”
Check it out:
Remember history is a guide, but never gospel.