The first quarter of 2016 was one for the books. Since the markets got out of their own way in January and found their footing, we’ve had nothing but gain after gain.
Now, January really was one of the most brutal starts in nearly 12 years, so those gains aren’t quite what they would be otherwise – the Dow is up just shy of 5%, the hard-hit Nasdaq has scraped out 1.16%, and the broad, deep S&P 500 is up around 4.06% – but as traders, we know to take profits when and where they come.
That’s the easy part.
Now we’re about to run headlong into one of the weakest traditional “seasons” on the markets. According to the Stock Trader’s Almanac, since 1950 the Dow has returned an average of 7.5% from November to April.
But the May to October window sees those gains pared to just 0.3%, on average, hence the old investors’ adage: Sell in May… and go away.
But I’m going to show you how you can hang tough in May… and walk away with all the money gun-shy investors are about to leave on the table.
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