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Market's "hotter than a two dollar pistol ... " (The Corvette Song - George Jones). But at the opera, it "ain't over til the fat lady sings" - so the sell-in-May crowd could still have it right. The second part of their oft-cited cliche says to buy back in November - when markets are lower. The election year cycle - linked elsewhere - is a different theory which may have upset the apple cart this year. Than again, maybe not. The powers-that-be care mainly about keeping markets levitated up until Nov. 6 - Election Day. After that, it's Katie bar the gate ... Markets could tumble and those who sold in May would rule the roost.
I’d like to make a comment on this. For those that follow my post, know I sold equities down in March, April and May. In these sells, I had good profit. With these proceeds, I began to buy back in, in June. The market got too frothy for me recently in its summer upward march so I again sold my equity spiff positions, and again, with good profit.
So more than once this year, but twice, I have banged good profit out of my equity spiff investment positions and I am hoping to do it again for a third time before year end. These equity spiff positions are only a small part of my overall portfolio and the profits form these special investment spiff positions have replaced the CD Ladder income I lost as my CD’s have matured. My CD ladder had a range in yield from four to five and one half percent and maturities form one to five years. Thus far this year my spiff positions have returned better than fifteen percent and some of them that I entered back in October of 2011, which I have since closed out, close to thirty percent.
So go figure, from my perspective, I have found it has been a good deal and one I’d repeat again. In addition, I hold many long term equity positions that account for about one half of the overall portfolio. So with this, I am profiting from a multi faceted investment approach. And, both of these are currently working as well as some others.
I believe that it is worth mentioning that the Sell In May axiom is a seasonal based investment strategy and is not ment to be a complete strategy, from my thoughts. At least, it isn't for me. And ... It is also worth noting that it works more times than not ... but, not everytime. It is simply a base to begin to work from along with the use of some market timing indicators that I have found enhanced the strategy.
Reply to @Skeeter: Thanks for the post Skeeter. I look forward to your perspective and thoughts on what you are doing in the market. I know from your posts that you follow the sell in May theory, but with the caveat that you don't ignore valuations and the market's direction during that time.
I like your systematic approach mainly because you are doing planned tweaking based on your own success formula for added return, not betting 'all' in hopes of quick riches.
Keep the updates coming. Always look forward to them.
Comments
I’d like to make a comment on this. For those that follow my post, know I sold equities down in March, April and May. In these sells, I had good profit. With these proceeds, I began to buy back in, in June. The market got too frothy for me recently in its summer upward march so I again sold my equity spiff positions, and again, with good profit.
So more than once this year, but twice, I have banged good profit out of my equity spiff investment positions and I am hoping to do it again for a third time before year end. These equity spiff positions are only a small part of my overall portfolio and the profits form these special investment spiff positions have replaced the CD Ladder income I lost as my CD’s have matured. My CD ladder had a range in yield from four to five and one half percent and maturities form one to five years. Thus far this year my spiff positions have returned better than fifteen percent and some of them that I entered back in October of 2011, which I have since closed out, close to thirty percent.
So go figure, from my perspective, I have found it has been a good deal and one I’d repeat again. In addition, I hold many long term equity positions that account for about one half of the overall portfolio. So with this, I am profiting from a multi faceted investment approach. And, both of these are currently working as well as some others.
I believe that it is worth mentioning that the Sell In May axiom is a seasonal based investment strategy and is not ment to be a complete strategy, from my thoughts. At least, it isn't for me. And ... It is also worth noting that it works more times than not ... but, not everytime. It is simply a base to begin to work from along with the use of some market timing indicators that I have found enhanced the strategy.
Something, to think on …
Good Investing,
Skeeter
I like your systematic approach mainly because you are doing planned tweaking based on your own success formula for added return, not betting 'all' in hopes of quick riches.
Keep the updates coming. Always look forward to them.