Sell in May
The six-month stretch beginning in May generally coincides with a narrow stock market in which non-cyclical and low volatility stocks tend to be the winners. Hence, don’t “sell” in May, but rather, tilt away from beta and away from “breadth.” These seasonal switching strategies have 70% batting averages.
I’m sure I’m not the only one who’s grown weary of the media’s “Sell In May” obsession in the last several weeks. In my case, I felt this old piece of stock market wisdom would be late by at least two weeks here in 2013. (But, as of early May, I was wrong.)