One of the oldest stock market market adages advises investors to dump their stock portfolios at the beginning of the summer in the hopes of ducking seasonal losses and enjoying more time at the beach.
To... One of the oldest stock market market adages advises investors to dump their stock portfolios at the beginning of the summer in the hopes of ducking seasonal losses and enjoying more time at the beach. To wit, a chart supplied by eToro’s Callie Cox shows that in recent years stocks have drifted listlessly higher during the summer months as trading volume fell and large daily moves became scarce.Stocks rose memorably between Memorial Day and Labor Day last year, with the S&P 500 index up more than 3% during that period, according to FactSet. Although the market tumbled to fresh lows in October.
Originally it may have started in Great Britain, where the rhyme went “sell in May, go away, and don’t come back till St Leger’s Day” — a reference to a famous horse race at Doncaster in England that takes place in mid-September.