It's pretty simple really: In the grand scheme of things I am a net-buyer of stocks. Now I know not everyone is a net-buyer of stocks. So I don't fall under the misguided notion that this is for everyone. But as it stands I am 40 years old and anticipate a lot of happy years ahead doing what I love. So when I find great companies that I'm interested in holding on to for a long time, I'm OK in the short-run if prices fall for whatever reason. If the fundamentals are still there, why not buy more? And if you diversify yourself sufficiently (it's different for everyone), you can actually find yourself smiling on those days when the market is taking it in the shorts.
Think about it this way: If the sellers come out en masse due to the calendar striking May, prices may just fall (in theory at least). That's short-term thinking and for those of us with a longer time horizon in mind it can spell opportunity.
Sell in May assumes that you can't pick stocks. I can. If you are hanging around here then you can too. So don't be scared to actually buy in May for a change. Given the fact that free money is going to be the name of the game for some time to come, I'm skeptical that we'll see sell in May take hold this year. The stock market is where it's at, period. Of course that can all change with one press release. But there's not much anyone can do about that. You can't win if you don't play. We'll probably see some stocks get hit for one reason or another though. And while earnings season just wrapped up, it's just three short months around the corner from hitting us again. So make sure you have your watch list ready. I'm gonna start throwing some ideas down over in "Stocks That Make Money" just to make sure I don't sleep on it.
JMo
Think about it this way: If the sellers come out en masse due to the calendar striking May, prices may just fall (in theory at least). That's short-term thinking and for those of us with a longer time horizon in mind it can spell opportunity.
Sell in May assumes that you can't pick stocks. I can. If you are hanging around here then you can too. So don't be scared to actually buy in May for a change. Given the fact that free money is going to be the name of the game for some time to come, I'm skeptical that we'll see sell in May take hold this year. The stock market is where it's at, period. Of course that can all change with one press release. But there's not much anyone can do about that. You can't win if you don't play. We'll probably see some stocks get hit for one reason or another though. And while earnings season just wrapped up, it's just three short months around the corner from hitting us again. So make sure you have your watch list ready. I'm gonna start throwing some ideas down over in "Stocks That Make Money" just to make sure I don't sleep on it.
JMo
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