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Sell in May and go away !
04-23-2011, 02:58 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,893
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Sell in May and go away !
Anyone planning to use this strategy in 2011 ?
Just curious.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
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04-23-2011, 03:26 PM
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#2
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Recycles dryer sheets
Join Date: Jan 2011
Location: Desert SW
Posts: 358
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I may sell of few equities, but not because it's May, but because they have had a nice run and I'll take some more profit out. Last year I sold enough to pay off the mortgage ($170,000) and my portfolio is still higher than it has ever been. Of course I'm still contributing to my savings, as I'm w*rking for another month.
My problem will be in where to put the profit I'm taking from equities. I'll put a bit in a short/intermediate term bond fund. After that??
__________________
Retired in 2011 at 54
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04-23-2011, 03:36 PM
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#3
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,350
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That old chestnut sure hasn't worked recently.
S&P 500
May 28, 2010 1089.41
Oct 1, 2010 1146.24
Net gain: 5.2%
__________________
I thought growing old would take longer.
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04-23-2011, 04:38 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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I sat through the last down turn so I can sit through anything, I think. So I'll just sit the way I am and see what happens.
__________________
Work is something you do to get enough $ so you don't have to....Me.
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04-23-2011, 04:48 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
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 Quote:
Originally Posted by frayne
Anyone planning to use this strategy in 2011?
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Nah.
__________________
And if I claim to be a wise man, it surely means that I don't know.
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04-23-2011, 04:48 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Quote:
Originally Posted by braumeister
That old chestnut sure hasn't worked recently.
S&P 500
May 28, 2010 1089.41
Oct 1, 2010 1146.24
Net gain: 5.2%
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Nice data mining. I'll try to do you one better.
VTSMX (Vanguard Total US Stock Market Index fund)
May 03, 2010 to 08/31/2010
Net gain: -12%
Of course, you missed some nice actionable downs and ups during that time period.
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04-23-2011, 05:07 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Location: near Canadian border and near Mexican border
Posts: 1,142
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Since I am not able to read charts with any certainty to predict the future, I will stay the course (same as in the past) and take the lumps if they occur.
__________________
Pigs get fat, hogs get slaughtered. That's my story and I am sticking to it.
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04-23-2011, 05:35 PM
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#8
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by 73ss454
I sat through the last down turn so I can sit through anything, I think. So I'll just sit the way I am and see what happens.
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+1
Besides, if I sold in May we would probably have the greatest market rally in modern times. 
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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04-23-2011, 05:50 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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I don't plan on doing any selling due to May. I have been selling this spring, but only because I am building a 3-yr cash cushion that I hope will take me through any downturns once I FIRE later this year.
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04-23-2011, 05:51 PM
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#10
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Recycles dryer sheets
Join Date: Nov 2010
Location: Houston/Galveston area
Posts: 163
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I sold in April when I moved my 401K to Vanguard. It's almost 40% of my investments and it's sitting in a money market fund while I sit on the fence. The more bad news we get the more the market goes up. Somebody needs to make up my mind, cause I don't know what to do.
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04-23-2011, 06:11 PM
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#11
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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No but I have been taking some profits .
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04-23-2011, 06:12 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Quote:
Originally Posted by JmfromTx
I sold in April when I moved my 401K to Vanguard. It's almost 40% of my investments and it's sitting in a money market fund while I sit on the fence. The more bad news we get the more the market goes up. Somebody needs to make up my mind, cause I don't know what to do.
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If you think you can time the market just sit till it corrects. If not, jump in and close you eyes.
I had to decide in 2006 and I went all in. Almost 5 years later I still have no idea where the market it headed. But I do know it will go up and down.
__________________
Work is something you do to get enough $ so you don't have to....Me.
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04-23-2011, 06:37 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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I might possibly sell some gold and silver. Will decide next month.
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04-23-2011, 08:09 PM
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#14
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2008
Posts: 13,143
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No, I don't sell in May and go Away.
Instead, I hold and go away April, May and June. 
In otherwords, I really only check my allocations each quarter, then if any asset class is off by more than 5%, I rebalance.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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04-23-2011, 08:12 PM
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#15
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by frayne
Sell in May and go away !
Anyone planning to use this strategy in 2011 ?
Just curious.
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Yeah-- in April. Took some profits off the table already and sold a few more calls to those who think the market will be up in August.
Berkshire Hathaway's annual meeting three-ring circus starts on the 30th so we'll see how things pop during the week after. Might need to sell or donate some shares for rebalancing.
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
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04-23-2011, 08:16 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,204
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Thinking about it. OK, so sell in May and Go Away does not work every year. However, this may be the year it does. Gas at $5 a gallon, more money in the money supply then ever before, the market on a good run. For me it seems like the market might be ready for a down turn, correction, what ever. So is it a sell in May and go away, beats me, but, I am still thinking of selling some.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
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04-23-2011, 09:09 PM
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#17
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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My AA is currently 49%/51% equity/fixed income. My target AA is 48%/52%, so it's pretty close.
I have a few positions that have done exceptionally well over the past year (commodity ETF, silver, company stock). I think I will sell some of those positions and go to cash. I have prepared a shopping list of stocks to buy during the next market correction. I just have to be patient.
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04-23-2011, 09:34 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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Just to confuse matters further: Sell In May and Go Away? History Says No - Seeking Alpha
If I sell anything, it will not be because of the time of year.
__________________
Budgeting is a skill practised by people who are bad at politics.
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04-24-2011, 03:44 AM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
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This year QE2 ends in June.
Gas prices on the rise may not help for this summer's vacation season.
Still, I intend to stay invested in equity (my allocation).
But I have been thinking about rebalancing before QE2 ends.
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04-24-2011, 09:24 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,603
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Quote:
Interesting chart ... it clearly shows the lions share of gains are Nov - Apr.
__________________
FIRE'd since 2005
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