In this blog post, we’ll be discussing an age-old investment adage that suggests investors sell their stocks in May and avoid the market until the fall. This strategy is known as “Sell in May and Go Away,” and it has been embraced by many investors. However, Ken Fisher, the founder of Fisher Investments, believes that this strategy is flawed and isn’t grounded in historical evidence. In this post, we’ll look at his arguments and why you might want to reconsider taking this approach to investing.
Fisher Investments’ Founder, Ken Fisher, Debunks: “Sell in May and Go Away”
Introduction
For many investors, “Sell in May and go away” is a popular adage. According to this old adage, it is wise to sell your stocks in May and wait until the fall to invest again. But is there any truth behind this maxim..?
In this article, we will examine whether this old piece of investing advice still holds up to scrutiny. We’ll explore what Fisher Investments’ Founder, Ken Fisher, has to say about the myth and whether his insights are supported by data.
Markets Have Random Returns
First, let’s start with the evidence. Based on Fisher Investments’ analysis, the stock market has random returns that cannot be explained by calendars or seasonal patterns. It is a fascinating insight that goes against some of the conventional wisdom that is popular among investors.
That said, it is undoubtedly true that some periods display a more favorable return on investment than others. However, basing one’s investing decisions solely on seasonal adages is not recommended.
Positive Returns Between May and September
Now, let’s dive deeper into the “Sell in May and go away” adage. According to Fisher Investments’ Founder, Ken Fisher, it is not only misleading but also flat-out wrong.
Analyzing the historical data, Fisher’s team has found that the period between May and September also displays positive returns, with only September being negative. In other words, selling stocks in May does not guarantee a profit, and waiting until fall to invest again can lead to missed opportunities.
It’s All About the Risks
It is worth noting that investing in securities always involves risks, and past performance is never indicative of future returns. Risk management is a crucial aspect of any investment strategy, and understanding the risks involved is essential.
Investing in foreign stock markets adds another layer of risks, such as currency fluctuations. However, Fisher Investments provides comprehensive research, risk management, and analysis to limit these risks.
Fisher Investments’ Social Media Presence
Finally, it is worth mentioning that Fisher Investments has a robust social media presence on Facebook, Twitter, LinkedIn, Instagram, and TikTok. Investors can follow them on these platforms for up-to-date insights and market analysis.
Conclusion
In conclusion, Fisher Investments’ Founder, Ken Fisher, debunks the myth of “Sell in May and go away.” Although seasonal patterns may exist, investing decisions should not be based solely on adages. Markets have random returns that cannot be explained by calendars or patterns.
Investing is a complex and dynamic process that requires careful consideration and risk management. Investors need to understand the risks involved, seek professional advice and stay up-to-date with the changing market dynamics.
