The Evolution of “Sell in May”
One last bit of follow up to my previous post questioning the “sell in May” rule.
In the table to the right (click to zoom) I show how the stock market’s best 6 months of the year has evolved over the last 80+ years. Each row represents 20 years. Red cells denote the “best” 6 months.
Recall that the “sell in May” rule is based on November through April being the best half of the year.
Given the results in my previous post, I was surprised by how consistently Nov – Apr (or at least Dec – May) was the best performing period.
OOPS: in my rush to get this post out I botched the table I initially posted. I was showing the best 6 months from 1930 to whatever year was listed on the table (rather than that particular 20 year period). Sincerest apologies!
Geek note: the “best” 6 month period was chosen based on volatility-adjusted (not absolute) dividend-adjusted S&P 500 returns.
Filed under: Time-based | 12 Comments