On Wall Street, there is: "Sell in May and buy again on Labor Day".
It is thought the markets frequently drop in late spring/early summer, is due to the holiday season coming into effect, taking time out from their business, doing fewer deals and selling all current stocks and thus reducing the value.
According to research in the American Stocktraders Almanac, if an investor starts with $10,000 in 1950, invests in the 500 stocks in the Standard & Poor's 500 Index in November and sold in May every year, until 1994, they would now have $492,060.
Had they invested each year at the start of May and sold at the end of October, they would be left with just $9682 - down on their original investment!
Source: Internet
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