I know I’m famous for being bullish but I have a problem with the history of the old adage “sell in May and go away”, as it pertains to stocks. The recent track record of May being a shocker for investors like us shows, for the past five years, it hasn’t really been a winning plan.
However, when you dig deeper, the longer story tells you that being cautious about buying stocks in May, and even up to October, may be an act of investing wisdom. And throw in a year when ther’ll be a mid-term election in November, then there’s even more room for caution.
Now given how far the US stock market has progressed in recent years, there are a lot of cautious players out there, who think a big sell-off is on the cards. That said, I’ve shown previously that this 9-year bull market is not as long as two recent ones that ran for 12 years. And then there was one in the 1950s that stretched out for 15 years plus!