There is a saying in the Stock Market, “Sell in May and Go Away.” But is there any truth to it?
What Does Sell in May and Go Away Mean?
Sell in May and Go Away refers to the fact that the summer months from May to September tend to see much lower stock market returns than the winter months from October through to April. It is a simple maxim to remind you that bad months in the stock market are coming.
Should You “Sell in May and Go Away”?
No, you should not “Sell in May and Go Away.” Based on our research, every year is different; you cannot dissolve your portfolio of stocks and ETFs based on the fact there is an outdated stock market maxim. Very few people actually follow this advice because the market would crash every year in May if they did.
In fact, the Best time to buy stocks is at the start of April.
60 Years of Sell in May and Go Away Research
“We see that over the last 60 years, the best months to be in the market were January, March, April, July, October, November, and December, those months having each attained on average of 0.5% or greater gain.
This is an average, and there are, of course, years where these months will bring negative returns. An excerpt from the Liberated Stock Trader PRO Books and Training Course.
Sell in May and Go Away Chart: 30 Years of Data
Sell in May and Go Away Analysis: 2000 to 2020
From the data, we can clearly see from the data that over the last 20-year to 2020, April has been the best performing month on the S&P 500 index with a 2.4% average gain. Additionally, June, July, August, and September have suffered on average losses of 0.6%. If you do Sell in May and Go Away, you will want to buy again at the start of October because October and November record an average of 1.12% gains.
| Month | Average of % Change |
| Jan | -0.28% |
| Feb | -0.65% |
| Mar | 0.83% |
| Apr | 2.40% |
| May | 0.30% |
| Jun | -0.50% |
| Jul | 0.90% |
| Aug | -0.28% |
| Sep | -0.83% |
| Oct | 1.17% |
| Nov | 1.08% |
| Dec | 0.50% |
| Grand Total | 0.39% |
You want to be a successful stock investor but don’t know where to start.
Learning stock market investing on your own can be overwhelming. There’s so much information out there, and it’s hard to know what’s true and what’s not.
Liberated Stock Trader Pro Investing Course
Our pro investing classes are the perfect way to learn stock investing. You will learn everything you need to know about financial analysis, charts, stock screening, and portfolio building so you can start building wealth today.
★ 16 Hours of Video Lessons + eBook ★
★ Complete Financial Analysis Lessons ★
★ 6 Proven Investing Strategies ★
★ Professional Grade Stock Chart Analysis Classes ★
40 Years of Sell in May and Go Away Analysis
Over the last 40 years from 1980 to 2020, the best months to buy stock have been April +1.97%, October +1.13%, November +1.55% & December +1.22%
| Month | Average of % Change |
| Jan | 1.07% |
| Feb | 0.20% |
| Mar | 0.70% |
| Apr | 1.97% |
| May | 0.96% |
| Jun | 0.28% |
| Jul | 0.91% |
| Aug | -0.08% |
| Sep | -0.52% |
| Oct | 1.13% |
| Nov | 1.55% |
| Dec | 1.22% |
The Best Months to Sell Stocks
If you are thinking about selling stocks, the best time to sell would be toward the end of August, as September is typically the worst month for stock market declines. September averaged a -0.52% loss over the last 40 years.
Summary
The single best month to buy stock over the last 40 years and in every decade has been April.
According to our 40 years of data, from 1980 to 2020, the best month to sell is September.
Interested in the best days of the week to trade? Interested in the four-year business cycle and when the worst years to invest are and when the best years are? In the Liberated Stock Trader Book, I show with an 86% probability that the 4-year business cycle is real and also when it is set to strike next.
Related Articles: Finding Great Stocks With Stock Rover
- 12 Legendary Strategies to Beat the Market That [Really] Work
- Our Beat the Market Screener [Actually] Beats the Market
- 4 Easy Steps to Build The Best Buffett Stock Screener
- 6 Steps to Build an Ethical ESG Investment Portfolio
- All Value Investing Strategies & Articles
- Use a CANSLIM Stock Screener Strategy To Beat the Market
