‘Sell in May and go away’ delivers mixed results
We start the week by looking at the classic ‘Sell in May and go away’ investment strategy. It involves divesting equities in May and re-investing in November to avoid the lacklustre summer period that historically has led stocks to underperform.
Using the Macrobond Investment strategy function, we look at returns you would have achieved since 2000 if you had exited between May and October each year, with returns had you stayed invested in the S&P 500 or Euro Stoxx 50 throughout.
You can see that the ‘Sell in May’ tactic delivered on its promise for European equities, but less so for US stocks.