The Lifelong Learner :: Do what you can, with what you have, where you are -Roosevelt ::

There was an interesting observation in the S&P Outlook recently. Since 1945, in the period from November-April, the S&P 500 returned 7.19%; in the May-October period, just 1.6%. What do do? Sell in May, and Buy back in November!

I think this is true this year. I feel like we’re due for a correction. It might be a good time now, especially after the recent records.

They recommend doing the following.

For May-October overweigh- consumer staples- health care

For November – April overweigh- financials- industrials- materials- consumer discretionary- information technology

Now that’s an interesting observation…

Here’s a chart that breaks the returns by month, averaged since 1950.