Why Do Investors Sell in May?

Author: Frank Holmes
Date Posted: May 14, 2018 Read time: 0 min

You might have heard the expression "sell in May and go away." Mike Matousek, head trader, tests this theory against a "buy and hold" strategy and explains the recent S&P 500 performance.

You might have heard the expression “sell in May and go away.” This investing strategy says that investors might sell equities in May and repurchase them in October, in order to avoid the poor returns historically experienced in the summer months. Mike Matousek, head trader at U.S. Global Investors, tests this theory against a “buy and hold” strategy and explains the recent S&P 500 performance.

For Mike’s full explanation, watch the video below!

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The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.