You may already be familiar with the catchy bit of investment advice to “sell in May and go away.”
Historically, the first day of May kicks off a seasonally weak period for stock prices that lasts through October.
That also means that most of the gains in the U.S. stock market come from the period between the start of November and the end of April.
This implies a shockingly simple strategy:
Invest in an index fund during November through April and then switch into money market funds until the next November, and you’ll be much better off than an investor who stays fully invested throughout the year.
In fact, I’m surprised there isn’t a “smart beta” exchange-traded fund (ETF) that puts this strategy into practice.
I’m guessing that’s because the “sell in May and go away” strategy is just too “shockingly simple.”
Read more about this easy strategy for growing your profits at Eagle Daily Investor.