"Sell in May and go away" is a popular adage or saying in the stock market that suggests investors should sell their stocks or investments in May and stay out of the market until the end of October. The idea behind this saying is that the stock market tends to experience weaker performance during the summer months, particularly from May to October. This pattern is often attributed to factors such as reduced trading activity, lower corporate earnings reports, or investors' vacation periods.
Etymology:
- The phrase is often used as a rule of thumb or a seasonal investing strategy, implying that investors could potentially avoid or minimize losses by selling their holdings in May and re-entering the market later. However, it is important to note that this saying is based on historical observations and does not guarantee success in predicting or timing the market accurately. As with any investment decision, it is advisable to consider individual circumstances, conduct thorough research, and seek professional financial advice before making investment choices.
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Many investors follow the old adage 'Sell in May and go away,' adjusting their investment strategy by selling off stocks in May and remaining out of the market until October.
Submitted by acronimous on July 04, 2023
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"sell in may and go away." Phrases.com. STANDS4 LLC, 2024. Web. 19 Dec. 2024. <https://www.phrases.com/phrase/sell-in-may-and-go-away_63861>.
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