Sell in May? No Way!
The term “sell in May and go away” was coined from the historic lackluster returns of the stock market during May through October. But statistics show when the stock market hits a new high in April (as it just did) the average return of the S&P 500 was +4.5%, compared to –1.1% when the market didn’t hit a new high in April (source: Sentimentrader). Sell in May? No way!
The stock market hasn’t moved in almost a year as profits were hurt by a strong dollar and low oil prices. But recently both have stabilized. In fact I’ve researched the USD and am confident companies will beat profit estimates later this Summer. These ten stocks I just recently added to the Growth Portfolio might have what it takes to beat the summer doldrums.
David Sharek is stock portfolio manager and CEO of DavidSharek.com. David believes a company's profits ultimately drive the price of its stock. His book The School of Hard Stocks can be found on Amazon.com.