“Sell in May and go away”
Some thoughts from Rhinebeck Blogger David J. Albahary, CFP® and the Green
The old adage to “sell in May and go away” could tempt investors even more this year to make some irrational decisions in their portfolios.
With the Dow Jones Industrial Average down more than 3% since the beginning of May it probably makes even more sense to walk away and get back in October. After all, we know Goldman Sachs advised their institutional clients nearly six weeks ago to sell their investments in commodities. And, like clockwork, nearly three weeks later, the market for commodities began to implode as margin requirements for silver were raised causing a huge sell-off. The price of oil dropped over 10% in one week. You would have thought the sky was falling. Get Out! Be smart! Don’t be like the foolish investors who stuck around for over 8% pummeling last May. If only it were that easy to time the markets we would all be rich.