Stocks: Sell in May – or Before?

You’ve probably heard of the old stock market saying, “Sell in May and go away.”

Its roots go way back, as Elliott Wave International’s Murray Gunn explains:

Back in the 1700s, the London bond and stock markets were populated by… mostly wealthy, land-owning gentry, they would have country estates outside of the great city. When it came to the summer, the “season” of garden parties, balls and festivities would beckon. Most exchange participants would retire to their country piles and enjoy a few months off.

With very few people around to trade, the stock market would tend to stagnate or even decline in the summer months.

As a result, back in those days in Britain, a saying developed which went “Sell in May and go away, come back on St. Leger Day.”

The St. Leger horse race has been run every September in Doncaster, England, since 1776.

This year, there may be an even bigger reason to sell before the summer months arrive. This chart and commentary are also from Murray Gunn’s “Gunn Show,” which is part of Elliott Wave International’s Pro Services:

Statistical studies have shown that, indeed, Northern Hemisphere stock markets underperform in summer compared with winter. And that makes the chart so compelling.

The global stock market index appears to be on the cusp of a decline in what could be a… dramatic wave. It looks like … another year when selling in May and going away could be prudent. But why wait until May?

Keep in mind that Elliott wave labels and corresponding forecasts are available to Pro Services subscribers, for markets ranging from stocks to cryptos and everything in-between.

Also keep in mind that seasonal tendencies in the stock market do not always work out to a “T,” nor does Elliott wave analysis.

However, all things considered, there’s every reason for stock market investors to be cautious.

Murray Gunn also provides extensive commentary on interest rates in his Pro Services section titled “The Gunn Show.”

I invite you to check it out as you follow the link below.

Why EWI’s Pro Services May Be for You

EWI’s Pro Services is likely tailor-made for you – if you are an active investor / trader who follows financial markets closely.

Pro Services covers daily and intraday trends in stocks, currencies, cryptos, energy, metals, interest rates and commodities.

This is an ideal time to check out our analysis – including Murray Gunn’s daily commentary, which you can find in “The Gunn Show” in our Interest Rates Pro Service.

As a trained economist, Murray Gunn recognizes that a major shift in interest rates is underway.

Prepare now for interest rate moves which will likely take most market observers by surprise.

Learn more about Interest Rates Pro Services as you follow the link below.