Sell in May?

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Sell in May?

Post by cswift01 »

It seems like there is a lot of dissonance on the "sell in may" adage. One interesting variation is this:

https://www.forbes.com/sites/greatspecu ... a484f43d49

Enjoy!

PhilJohn
Posts: 396
Joined: Tue Apr 25, 2017 10:38 am

Re: Sell in May?

Post by PhilJohn »

I think I go to C Fund in May, mostly.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Sell in May?

Post by mindofmush »

cswift01 wrote:It seems like there is a lot of dissonance on the "sell in may" adage. One interesting variation is this:
https://www.forbes.com/sites/greatspecu ... a484f43d49
Enjoy!
Even though the "sell in May" adage only "works" half the time when applied to the whole market, it shows that if you say a thing enough times it becomes "true". The Forbes article points out that several market sectors are unaffected by the "sell in May truism" but that doesn't help in choosing a TSP mutual fund.

I came across a website that posted an observation on a different kind of "May effect":
The May Effect
There is a May effect which is quite unusual for stocks. Since 1970 the full year has been positive when the month of May ends with the S&P up over the year. In other words, on Jan 2 2018 the S&P opened at 2683.73. If May 31 the month of May ends with the S&P higher, the index has been higher by the end of the year. This has happened in every year since 1970, except for 1990.
Might help deciding whether to stay in stock funds throughout the rest of the year.
mo meng, mo ching (which loosely means: no money, no life)

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jlozano042
Posts: 836
Joined: Tue Apr 04, 2017 12:37 pm

Re: Sell in May?

Post by jlozano042 »

mindofmush wrote:
cswift01 wrote:It seems like there is a lot of dissonance on the "sell in may" adage. One interesting variation is this:
https://www.forbes.com/sites/greatspecu ... a484f43d49
Enjoy!
Even though the "sell in May" adage only "works" half the time when applied to the whole market, it shows that if you say a thing enough times it becomes "true". The Forbes article points out that several market sectors are unaffected by the "sell in May truism" but that doesn't help in choosing a TSP mutual fund.

I came across a website that posted an observation on a different kind of "May effect":
The May Effect
There is a May effect which is quite unusual for stocks. Since 1970 the full year has been positive when the month of May ends with the S&P up over the year. In other words, on Jan 2 2018 the S&P opened at 2683.73. If May 31 the month of May ends with the S&P higher, the index has been higher by the end of the year. This has happened in every year since 1970, except for 1990.
Might help deciding whether to stay in stock funds throughout the rest of the year.
Very interesting!

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Sell in May?

Post by cswift01 »

Funny story. I forgot yesterday to go back to the equities (according to daily), so I quickly bought in yesterday. Of course today looks like at least a 1% drop. What a great plan!

Thanks for the info MoM.

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jlozano042
Posts: 836
Joined: Tue Apr 04, 2017 12:37 pm

Re: Sell in May?

Post by jlozano042 »

Yeah .... everything was great until I jumped into the mix yesterday. :(

When the day comes this year where I break even, I will have the party of all parties at Chuck E. Cheese and invite you all!

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Sell in May?

Post by Scorpio70 »

I broke even and jumped out. I saw we had like 7 days of positive, karma would probably say that was enough. I figure we have so much negative, and then boom. It is not a rational thing. At the end of the day what matters is the number of participants, and the amount they put in. The rest is analysis and emotions.

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jlozano042
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Joined: Tue Apr 04, 2017 12:37 pm

Re: Sell in May?

Post by jlozano042 »

Good call Scorpio70

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Billionair
Posts: 271
Joined: Wed May 02, 2018 11:27 am

Re: Sell in May?

Post by Billionair »

Scorpio70 wrote:I broke even and jumped out. I saw we had like 7 days of positive, karma would probably say that was enough. I figure we have so much negative, and then boom. It is not a rational thing. At the end of the day what matters is the number of participants, and the amount they put in. The rest is analysis and emotions.
I stuck around for the 8 day positive, and moved out on the last day, taking a 50$ hit. Was up 2.3% for the entire month. Currently sitting in the G due to a mistake and thought an IFT to G didn't count till the end of the month. I was supposed to be in the S, but as others have pointed out, the S is taking a hit this week, probably rebounding at the end of the month! I try to win my % for the month and move.
-What we do in Life, echoes in Retirement-

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jlozano042
Posts: 836
Joined: Tue Apr 04, 2017 12:37 pm

Re: Sell in May?

Post by jlozano042 »

Eh .... well what do you know, today was in the green for me. Might have that party after all.

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