April 2016 poll results
Will you 'sell in May and come back on St Leger's Day?'*
- What are you talking about? (Tell me more!)
For our poll respondents who were not familiar with the adage 'sell in May and go away, don't come back till St. Leger’s Day', it refers to the time when stock market traders either spend the summer on holiday or attending social or sporting events like Wimbledon and Ascot. As a result of less trading, any sudden market sell-offs were amplified. Therefore, it was suggested, investors were better off selling their holdings in May and investing again on St Leger's Day in September.
However, if you look back over the past 30 years**, it's not that clean cut: Whilst people following the adage in 2001 and 2002 would have avoided losses of 18% and 21% respectively, they would also have missed out on 19 out of 30 years of positive returns. And with market news easily accessible on phones these days, it's arguable that the adage, like the horses, has run its course!
We'll see in September which of our respondents bet correctly.....
*Based on feedback from 158 FundCalibre visitors from 01/04/16 - 30/04/16
**FTSE All Share, dividends reinvested, 1st May to second week in September each year.
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