“Sell in May and go away” states that the stock market is seasonally “weak” from May – September. As you can see from the chart below, the stock market’s average gain in May is approximately 0%.
May 2018 has been different. The S&P 500 rallied 2.16% in May 2018, which is significantly above 0%.
How has the stock market performed (historically) when it bucked the “sell in May and go away” bearish tendency in May?
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This study suggests that the stock market will probably close higher at the end of this year (December 2018) than last year (December 2017) with an 86% probability.
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