So much for the old adage.
If you had sold in May and come back on Friday you would have missed out on a 17 per cent rally and quite possibly lost your job.
According to the Motley Fool, selling in May and coming back in September would have worked 13 out of 25 times in the last quarter of a century. Historically shares have fallen by 0.7 per cent in between May and September, and if you had heeded the call in 1998 you would have ducked the failure of Long Term Capital Management.
So, a good idea most some of the time. But not this year:
Thus, a new market mantra for new times: “At the Ides of March buy away, load ‘em up till Lehman’s Day”.
Related links:
Bears, keep the faith – FT Alphaville
The rally is not over yet says Teun – Long Room