The market has old wives’ tales, too

Hey there! You've probably heard the expression "old wives' tale" before. I guess it's kind of an antiquated expression, now that I think about it, but it's basically any one of those trite expressions you hear that either aren't usually true or are so obvious they didn't need saying. You know, things like: Feed a cold, starve a fever Or If you cross your eyes, they'll stay that way Or even Don't swim after eating You know the expressions, right? They may tell you something that has some truth, but they're so short they're basically meaningless. Well, there's one consistent old wives' tale in the market that just won't go away. And given what month it is, you may know where I'm going with this… Sell in May and go away It's an expression as old as anyone can remember, and it's absolutely worthless. Of course, you're entitled to trade however you want, but I don't find this expression very helpful, and neither, according to this article, do folks on Wall Street or at CNBC. As one strategist put it bluntly, "any investment strategy that you can summarize in a rhyme is probably a bad strategy." And he's probably right. As with every such expression, there's a kernel of truth here. The market overall tends to be weaker in May and in summer than it does in fall and winter. But as that same strategist explains, that's no reason to leave stocks. As he says, "this would be perfectly reasonable if every single May looked the same," but of course we know that's not true! Last year, the market was just starting to recover in earnest after the pandemic crash. So it would have been a really silly time to "sell in May and go away." And besides, these adages are usually just a broad overview of the market. They're not really paying attention to the kind of trading we like to do, where we carefully analyze individual stocks and make informed trades. So really, the expression just doesn't mean a whole lot to us. Your trading strategy is entirely up to you. So if you want to "sell in May and go away," then you absolutely can! (Hopefully you at least get to "go away" to someplace fun. Like Bora Bora or Florida or Europe!) But let that be your decision. Don't make it just cause some old wives' tale told you to! Hope you're having a great weekend! Chat soon, Markay Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is intended as educational in nature and we do not recommend that you buy or sell any specific financial instrument. Daily Profit Publishing , 1800 Hughes Landing Blvd. Ste. 200, The Woodlands, TX 77380, United States Update your subscription — Unsubscribe