As the hardly merry month of May looms, recall that stocks have dipped five years in a row around this so-called merry month! In the US, there is a general belief that the first few months are great for stocks, so traders pocket their gains and head to the beach.
In the UK, they say “sell in May and come back on St. Leger Day.” This is September 13 and marks the recommencement of serious stock trading. The dear old Poms have a penchant to go sports mad in summer with Royal Ascot, Wimbledon, rowing at Henley, sailing at Cowes and then a spot of cricket at Lords.
The UK Telegraph cites work done by Bestinvest, which showed the FTSE index actually went up 15 out of 25 times between May 1 and the second week in September. But when stocks fall over this time, it can be serious.