"Sell in May, and go Away...?"

The oft-cited strategy for investors to "sell in May and go away" might be especially tempting this year. In spite of the market's spring rally, the outlook for the economy is still uncertain and stocks do traditionally lag from the Spring months on into mid-autumn. So why not sell stocks now and move into bonds? Simplistic as it sounds, the approach has actually produced reliable results with reduced risk for over 50 years! Since 1950, the Dow Jones average has an average gain of 7.3% from November through April compared to a mere 0.1% from May through October.

Of course, there is no guarantee that it will work in this year, especially coming off the roller-coaster ride that was 2008. However, for those investors who want fewer sleepless nights, and are willing to forgo some potential upside, this approach may make sense. Remember, though, to move back into stocks in October. Please contact our offices if you would like to discuss this approach and how it may make sense to your individual account.