Sunday, November 2, 2008

Sell in May & Go Away!

The words of market wisdom, "Sell in May and go away", proved to be spot on again!

Also known as the "Halloween Indicator", stock market returns are usually higher in the November-April period than those in the May-October period.

One study noted that this pattern worked after both the Crash of 1929 and 1987.

People dun understand why this pattern occurred, though they have some explanations which do not appear to explain this puzzle convincingly.

Hmm.. think I can solve this puzzle now!

It's got to do with Fengshui & Stock Market!

So should we buy in November 2008, then sell in May 2009 and go away?

Should we observe this market wisdom for the next 7 or more Bear Years?

Hmm.. Bear "Kor Kor" (chinese meaning brother), please take a break and have a kit kat!

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