Over the past 80 years, there have been 9 times where the S&P 500 had a negative return of at least 5.00% in May. As you can see in the table above, all but one of those times were followed by a market rally in the following months.
Keep in mind that past performance should never indicate future results. However, the lesson here is to ensure you are invested properly and maintain the long-term view. Its easy to be concerned right now with the trade tensions between China and Mexico but trying to time the market could lead to a costly mistake. For instance, how would you feel if you were miss out on one of the above rallies? Having a solid investment plan that keeps you invested and offers some downside protection to your portfolio can help mitigate some of these concerns. As always if you have any questions please feel free to reach out.
What does history say when they sell in May?
May 31, 2019
Get all your investment questions answered, Quickly
This is a free service for you