Market Seasonality: Capitalizing Upon Summer Decline – Seeking Alpha 05-17-12

Salient to Investors:

Mateo Blumer at Flohr Asset Mgmt writes:
  • Sell in May and go away is given credence by several historical trends. The stock market performs far better during the 6-month period from November through April than it does from May through October.
  • Investing in the Dow Jones on May 1 and selling it on October 31 each year since 1950 would have lost money as of 2011, with 25 down years out of 62,   11 of which by more than 10%.
  • Investing $10,000 on November 1 and selling it on April 30 for every year since 1950 would have returned an average annual rate of 7.1%, with only 13 down years, 3 of which by more than 10%.
  • From 1926-2004, September and October had the lowest average returns.

Read the full article at http://seekingalpha.com/article/596821-market-seasonality-capitalizing-upon-summer-decline

Sell in May and Go Away? Not! – Forbes 05-01-12

Salient to Investors:

Eamonn Fingleton writes:
  • Being a contrarian in the value tradition, I like larger-than-average dividends that often come with out-of-favor stocks.
  • Motley Fool contributor Alex Dumortier says the “sell in May and go away” adage record using the  S & P 500 back to 1926 has some truth but  not enough to justify going into cash.
  • Prefer high-yield stocks, US regional banks that pay a dividend and exhibit insider buying.
  • Germany and most other key eurozone nations are still solvent. The euro will be back.

Read the full article at http://www.forbes.com/sites/eamonnfingleton/2012/05/01/sell-in-may-and-go-away-not/