It’s the month of May, which means that the investment press is pumping out the obligatory spew of articles on the wisdom (or otherwise) of adopting a “sell in May” strategy – also known, in the US, as “the Halloween effect”. The basic idea is that markets historically do better in the winter months (end-October to end-April) than in the summer months. Therefore, you should dump your stocks in early May, sit in cash (or short-term bonds), and not buy back in until pumpkin-carving season is over.
Is there any validity to the idea? Perhaps [...]