Sell in May buy in Sept - anyone trying it this year?

[Welshbeef]

I’m sure most investors have heard the title of the thread - but as individual investors in individual stocks or unit trusts or Vanguard lifestyle investments do you follow the historical logic of selling in May and then buying new stock in Sept.

[rdjohn]

With what Trump is now suggesting for China, this may work very well, this year.

I think the term really related to pre 1986 Big-bang when your friendly Stockbroker (Insider trader) went on holiday. The market trading now is just too intense, on a global scale, to allow that to happen.

The market now always represents the perceived current value.

[tighnamara]

Welshbeef said:

I’m sure most investors have heard the title of the thread - but as individual investors in individual stocks or unit trusts or Vanguard lifestyle investments do you follow the historical logic of selling in May and then buying new stock in Sept.

Is that really something an investor should be doing ?

[The Mad Monk]

Welshbeef said:

I’m sure most investors have heard the title of the thread - but as individual investors in individual stocks or unit trusts or Vanguard lifestyle investments do you follow the historical logic of selling in May and then buying new stock in Sept.

No. I haven't heard that thread title given as investment advice.


However. I have heard:-

"Sell in May and go away, don't come back 'til St. Leger Day.

[Marcellus]

I know of currency traders who still refuse to trade during July and August as it's silly season and they're just as likely to get it wrong as they are right so playing the odds don't bother.

[Condi]

Most markets are less liquid and thus more likely to be irrational when people are on summer holidays.

Notice it more on half terms weeks tbh, look at how the vols drop away, particularly for domestic markets like UK gas, etc. Unlike a summer break half term seems to happen all at once.