Welcome to our latest blog post where we delve into the popular stock market adage of “Sell in May and Go Away.” This age-old recommendation advises investors to sell their stocks in May and re-enter the market after the summer period. However, we have invited renowned financial expert Ken Fisher to debunk this commonly held belief and provide his expert insights on why this strategy may not be the best course of action for investors. So, let’s dive in and discover the truth behind this market myth!
Introduction #
Ken Fisher is a well-known name in the investment world. As the founder and executive chairman of Fisher Investments, he has been sharing his market thoughts and insights for decades. Recently, he appeared in a short video on social media discussing a popular investing adage: “Sell in May and Go Away”. In this article, we will take a closer look at what Ken Fisher had to say about this strategy and whether it’s something investors should consider.
Ken Fisher Debunks: “Sell in May and Go Away”
The #shorts video that Ken Fisher appeared in, went viral within hours of its release. In the video, Fisher expressed his disagreement with the popular investing maxim “Sell in May and Go Away”. He argued that this strategy is outdated and doesn’t necessarily work. According to Fisher, investors should be focused on the long term and not be swayed by seasonal trends.
While Fisher makes a good point, it’s still important to understand the reasoning behind the “Sell in May and Go Away” adage. This strategy suggests that investors should sell their positions in May and avoid the stock market during the summer months. The idea is that market returns are historically lower during this time, and investors are better off waiting until the fall to reinvest.
The Flaws in the “Sell in May and Go Away” Strategy
While the “Sell in May and Go Away” strategy might make sense on the surface, there are several flaws with it. For one, market returns are never guaranteed. Just because stock market returns have historically been lower during the summer months doesn’t mean they will continue to be that way. Investing always involves risk, and the past performance does not guarantee future returns.
Additionally, the strategy fails to account for the fact that investing in foreign stock markets involves additional risks. While we tend to focus mostly on the U.S. stock market, investors need to remember that the global markets are interconnected. If one market falls, it can trigger a chain reaction that impacts other markets as well.
Fisher Investments: Connect with Ken Fisher on Social Media
If you are interested in learning more about Fisher Investments and Ken Fisher’s market insights, you can find them on social media. Fisher Investments has an active presence on Facebook, Twitter, and LinkedIn. Ken Fisher himself can also be followed on Facebook, Twitter, LinkedIn, and Instagram.
Conclusion
“Sell in May and Go Away” might have been a useful strategy at one point in time, but it’s no longer relevant in today’s rapidly changing investment world. As Ken Fisher pointed out, it’s important to be focused on the long term and not get caught up in seasonal trends. But, remember that investing always involves risk, and investors should be aware of the potential pitfalls no matter what the season.
