Should Investors Now Buy in May or Face Dismay?

There is a traditional stock market saying; “Sell in May and Go Away and don’t come back Until Labor Day.”

However this year this proverb looks as if it will be wrong.

The proverb means that investors should sell their stocks in May and wait until early September (Labor Day in the USA) until purchasing them back as the market generally tends to drift down during this time.

This year the HUI, which is an index of unhedged gold producers, is now higher than it was at any point in May. Therefore if an investor sold his or her stocks in May, they have now missed out on a considerable profit.

Therefore the phrase “Sell in May and Go Away” has been replaced by certain gold analysts by “Buy in May or Face Dismay”.

Do you think the stock market and indices such as the HUI will be higher in September than they were in May?

Can they hold their current gains?

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