Have you heard that one? Seems to be 50/50 when we ask. A client said it last week, so let’s indulge.

It’s a few decades old. Someone once (mistakenly) thought that the market was a sure bet to waste your time and money between May and August. Buy back in September, they would’ve advised.

Well…that’s bad advice.

Those who read this likely know by now that market timing in any way, shape or form does not work. That’s not an opinion – it’s scientific fact. We’re sure you’re sick of hearing it! So let’s look instead:

Jared Blikre of Yahoo Finance produced this simple yet compelling chart. The Depression years and recovery were a mess. Since then (1942 onward), every season – not meteorological, but you get the point – has produced positive returns. Surely less for May-August from ’60 to ’87, but nevertheless positive.

We suppose someone on New Year’s Day of 1988 was feeling a bit shorted by their summer returns. Now, we have this ludicrous expression that somehow has endured. And by “somehow”, we mean the financial media. Google it, and hit “news”. It’s the same every year – a dozen articles at least from all the major sources. At least this year, it seems the Masters of Pecuniary Paroxysm finally see what we’ve known forever: selling in May is just unfounded nonsense.

Cheers,

Your Great Oak Team