Here’s a lesser-known fact: the so-called “worst six months” of the year — from May through October — have actually posted gains in 8 of the last 10 years. In fact, we pointed out last year that buying in May made more sense than selling, and those “worst” months ended up rallying over 13%.
On top of that, May itself has closed higher in 9 of the past 10 years. Maybe it’s time to retire the old adage “Sell in May and go away” and replace it with “Sell in June — if you must.”
Looking at seasonal patterns, May in post-election years tends to be a strong month, averaging a 1.6% gain. That makes it the fourth-best month historically in that cycle. Of course, April is usually solid too, and that didn’t quite play out this year — but let’s not forget, we’ve come well off the lows.