Sell in May and go away? When is the right time to sell your stocks?

John Perlman interviews Paul Roelofse, a Certified Financial Planner.

Listen below.

Economic fundamentals are weak, marked by high inflation and debt costs, yet many stock markets, exemplified by the S&P, are hitting new records, prompting the question: Is it time to sell?

The famous investment saying 'Sell in May and go away' advises selling stocks in May and reinvesting in November to sidestep historically weaker summer market performance.

Dating back to the 18th century in England, affluent investors, primarily wealthy aristocrats, would depart from the city to spend the summer months in the countryside.

This resulted in reduced trading volumes and possibly weaker market performance – a persistent phenomenon, notes Roelofse. 

While the strategy isn't infallible, he underscores the importance of considering historical patterns and current market conditions when crafting investment plans, highlighting May's historical significance as the optimal time to act.

"We can't ignore the fact that traditionally and seasonally, the markets have always underperformed in the time of May right down to October."

- Paul Roelofse, Certified Financial Planner

"The question now looms: is it the time?"

- Paul Roelofse, Certified Financial Planner

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