Sell in May and go away in 2023?
Beyond Markets
00:00
The Effect of Liquidity on Market Performance
Historically equities tend to underperform in the six month period from May to November. The reason is that if you have investors who are worried or scared it means that they have cash on the sidelines. So as soon as the mood brightens those investors might be the additional buyer in the market which push prices higher. Menzel: I would expect defensive stocks to generally fare better in a scenario where equities are going down. In other asset classes does the selling may line apply there as well? Yes very interestingly it applies for example US Treasury bonds 7-10 year have very good performance in the summer months and here at the same time emerging market stocks and copper decline more than 2.
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