The End of ‘Sell in May and Go Away?’
The End of ‘Sell in May and Go Away?’ (CNBC.com)
The old investor maxim, “Sell in May and go away,” may be tweaked this summer for U.S. investors to something more akin to “hold in May, and stay.” At least, that’s according to Schroders, a U.K.-based global asset management company. A company report, published by CNBC.com, claims that while U.S. economic activity appears as if it will continue to climb throughout the summer, the same reasons propelling the American economy ahead may harm exporters and actually destabilize global economic growth. Schroders’ analysts claim “… of the demand generated by the U.S., more is likely to be met by domestic rather than overseas production.” If the report’s correct, then the notion of dumping stocks before the market’s typical summer malaise may just be the exact wrong thing to do for investors in the U.S. economy.