"Sell in May and go away" is a popular seasonal indicator for investors who like to consider historical trends as well as market fundamentals when buying and selling stocks. It is based on the fact that the stock market has usually underperformed in the period from May through October when compared to the other half of the year. The indicator, also known as the six-month switching strategy, holds that investing in a major stock-market index during the "best six months" (November through April) and then switching into bonds for the "worst six months" will generate significantly better returns. That has been the case in 40 of the last 60 years, although not this past year. Following are percentage returns of the Dow Jones industrial average during each six-month period dating to 1950. The first figure listed is from the traditional "worst" period (May through October); second is November through April of the following year. Years preceded by hyphens signify those when the indicator did not hold to form: -2009: 18.9 percent; 15 percent (through April 29) 2008: -27.3 percent; -12.4 percent -2007: 6.6; -8.0 percent 2006: 6.3; 8.1 2005: 2.4; 8.9 2004: -1.9; 1.6 -2003: 15.6; 4.3 2002: -15.6; 1.0 2001: -15.5; 9.6 -2000: 2.2; -2.2 1999: -0.5; 0.04 1998: -5.2; 25.6 1997: 6.2; 21.8 1996: 8.3; 16.2 1995: 10.0; 17.1 1994: 6.2; 10.6 -1993: 7.4; 0.03 1992: -4.0; 6.2 1991: 6.3; 9.4 1990: -8.1; 18.2 -1989: 9.4; 0.4 1988: 5.7; 12.6 1987: -12.8; 1.9 1986: 5.3; 21.8 1985: 9.2; 29.8 1984: 3.1; 4.2 -1983: -0.1; -4.4 1982: 16.9; 23.6 1981: -14.6; -0.5 -1980: 13.1; 7.9 1979: -4.6; 0.2 1978: -5.4; 7.9 1977: -11.7; 2.3 -1976: -3.2; -3.9 1975: 1.8; 19.2 1974: -20.5; 23.4 -1973: 3.8; -12.5 -1972: 0.1; -3.6 1971: -10.9; 13.7 1970: 2.7; 24.6 -1969: -9.9; -14.0 -1968: 4.4; -0.2 1967: -1.9; 3.7 1966: -13.6; 11.1 -1965: 4.2; -2.8 -1964: 7.7; 5.6 1963: 5.2; 7.4 1962: -11.4; 21.7 -1961: 3.7; -5.5 1960: -3.5; 16.9 -1959: 3.7; -6.9 -1958: 19.2; 14.8 1957: -10.8; 3.4 1956: -7.0; -3.0 1955: 6.9; 13.5 1954: 10.3; 20.9 1953: 0.4; 15.8 -1952: 4.5; 2.1 -1951: 1.2; -1.8 1950: 5.0; 15.2 Source: Stock Trader's Almanac Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
.
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