Yahoo Finance reports that investors and analysts are highly skeptical about the effectiveness of the age-old stock market adage, "Sell in May and go away," given current market conditions. Experts who analyze market dynamics say the situation, influenced by geopolitical factors and trade uncertainties, is very different from previous historical trends.
According to LPL Financial, since 1950, the S&P 500 Index has returned an average of just 1.8% from May through October, while the November through April period typically yields better results. However, analysts caution that this pattern may not hold true this year. The current volatility makes seasonal trends less reliable, the company notes.
Siebert Financial’s Mark Malloch believes that significant fluctuations and market uncertainty are key factors in diminishing the importance of seasonal patterns. Meanwhile, the S&P 500 Index is in the midst of a recovery. In this context, experts suggest that investors should prioritize fundamental factors and the current market landscape over calendar-based strategies. LPL Financial recommends focusing on buying opportunities to take advantage of the current downturn.