WrapManager's Wealth Management Blog

When life changes, we can help you thoughtfully respond.

Sell in May and Go Away?

Posted by Doug Hutchinson | CFA®, Director of Research and Trading

April 24, 2018

With the month of May approaching, it’s the time of year when we’re reminded of the old Wall Street saying, “sell in May and go away.” In theory, this suggests that an investor can sell out of the stock market on May 1st and get back into the market on November 1st to avoid the months where equity returns are typically depressed.

While the saying “sell in May and go away” may be catchy, is it actually sound investment advice?

Over the 50 years prior to 2016, during the 6-month period from May 1st through October 31st, U.S. stocks returned an average of 2.68%, while the 6-month period of November 1st through April 30th, U.S. stocks returned an average of 8.08%.[1]

[+] Read More

Investment Psychology Market Volatility behavioral finance

Tax Reform Favors Charitable Giving From IRAs Finds Lord Abbett

April 19, 2018
Qualified charitable distributions (QCD) are poised to become even more popular under the new tax law.  While the Tax Cuts and Jobs Act ... [+] Read More

Rethink your Retirement Strategy with Goals-Based Wealth Management

April 17, 2018
An axiom you hear often in the financial world is that “every person’s financial situation is different.” That’s undoubtedly true. What you ... [+] Read More

Understanding How the U.S. Taxes Foreign Dividend Payments: Doug’s Quiz Corner

April 13, 2018
How Do Tax Credits and Tax Deductions Work for Foreign Dividend Payments? Your friend Emily made an investment in the stock of a company ... [+] Read More

Main Management Reviews Q1 Market Volatility and Its Impact on the Uncertainty Index

April 12, 2018
Taking A Look Back at Major Market Milestones of First Quarter 2018 The first quarter of 2018 was anything but a continuation of the market ... [+] Read More

The True Cost of Homeownership

April 11, 2018
The act of buying a first home is often framed as a wonderful, life-changing experience. And to be sure, it almost always is. But it’s the ... [+] Read More

How to Research a Money Manager

April 10, 2018
The age of the internet has given us a lot of good information, and it’s made research easier for the average person. Wondering who won the ... [+] Read More

J.P. Morgan Releases 2Q 2018 Guide to the Markets

April 5, 2018
J.P. Morgan Quarterly Guide to the Markets Now Available  JP Morgan's Guide to the Markets (GTM) for the second quarter of 2018 is now ... [+] Read More

Should You Be Concerned About Rising Interest Rates?

April 3, 2018
With interest rates spiking unexpectedly in early 2018 and the Fed poised to continue raising interest rates throughout 2018, some bond ... [+] Read More

Nuveen Believes Market Fundamentals Remain Solid Over the Long-Term

March 29, 2018
Are investors overly pessimistic about downside market risks? While fundamentals haven’t changed significantly, volatility has picked up ... [+] Read More