market timing

jking89 / flickr.com

The financial media are full of suggestions for timing the stock market. We usually discredit those schemes on Money Matters, but this month we talk about one that might have at least a little merit to it.

The strategy is to “sell in May and go away.” 

It’s based on the notion that the six months from late fall to late spring are great for owning stocks. Conversely, the period starting in May is not.  Those periods are often referred to as the winter months vs. the summer months.

Does it really work?