Sell in May?

Are investors better off selling their stocks in the month of May? If you have stocks in April, would your stocks be higher at end of May? How have the stocks moved within a month (in May)?

The following table shows the stock indices of major stock markets as at end of April to end of May.

Stock Indices 29-Apr-16 31-May-16 Change
Mumbai BSESN 25,606.62 26,667.96 4.1%
Nasdaq (USA) 4,775.36 4,948.05 3.6%
Nikkei 225 (Japan) 16,666.05 17,234.98 3.4%
Australia All Ordinaries 5,316.00 5,447.80 2.5%
Germany DAX 10,038.97 10,262.74 2.2%
Taiwan Weighted 8,377.90 8,535.59 1.9%
CAC 40 (France) 4,428.96 4,505.62 1.7%
S&P 500 (USA) 2,065.30 2,096.95 1.5%
Dow Jones (USA) 17,773.64 17,787.20 0.1%
FTSE100 (UK) 6,241.90 6,230.80 -0.2%
Kospi (Korea) 1,994.15 1,983.40 -0.5%
Shanghai Composite (China) 2,938.32 2,916.62 -0.7%
Hang Seng (HK) 21,067.05 20,815.09 -1.2%
STI (Singapore) 2,838.52 2,791.06 -1.7%

9 stock indices were in the black and 5 stock indices declined in the period. India’s BSESN stood out as the best performer at 4.1% jump in stock index. The Straits Times Index (STI) was the worst in the table above (-1.7%).

In this uncertain investment climate, one cannot be sure when one moves into June 2016. Maybe selling in the month of May could be the right strategy after all. Who knows?

All I know is that my portfolio of Singapore equity was down 1.6% in the month of May. However because I received dividends in May, my portfolio only declined 0.5%.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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One Response to Sell in May?

  1. Pingback: Daily SG: 2 Jun 2016 – The Singapore Daily

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