Monday, May 01, 2006

Sell in May and go away

The start of May is an opportune moment to remember the old adage: Sell in May and go away.

`Sell in May' Strategy in U.S. Stocks Seen as Prudent This Year

"`Sell in May and go away' became a Wall Street axiom two decades ago, thanks to the Stock Trader's Almanac. The strategy may be more compelling than usual for U.S. stock investors this year, according to its editor."

"The Dow Jones Industrial Average may tumble as much as 30 percent between May and October from the six-year high set last month"

"We have a very lofty market entering a seasonably unfavorable time in the most vulnerable period in the election cycle"

"Financial-newsletter writers are increasingly calling for stocks to fall 10 percent, according to Investors Intelligence. Advisers predicting a ``correction'' climbed in the week ended April 21 to 28.8 percent, the most since August 2004"

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