Sell in MAY and Go Away ?

According to CNBC market reporter Bob Pisani, the seasonal stock trading theory of 'Sell In MAY and Go Away' (being a seller of S+P 500 stocks during the 6 month time period of May through October) has worked in all but 4 of the past 25 years.

In other words, in 21 of the past 25 years (84% of the time) it has been a better time to own stocks during the 6 month time period of November to April (versus May through October). Guess this lends some credence to the idea that the market tends to outperform during the 4th and 1st calendar quarters of the year vs. the 2nd and 3rd.

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*For some additional numbers related to the performance of the Dow Jones Industrial Average (a PRICE-weighted index tracking 30 megacap companies):

From 1950 to 2005:
*During May 1st to October 31st --> the Dow is up 0.5%

*During November 1st to April 1st --> the Dow is up 8%

Data Courtesy: CNBC.