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Sell in May and go away ?
Old 05-27-2014, 09:49 AM   #1
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Sell in May and go away ?

I think I ask this same question about every year and always like to see the comments.

Well
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Old 05-27-2014, 09:51 AM   #2
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Doesn't this belong in the dirty market timer's forum?
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Old 05-27-2014, 10:18 AM   #3
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No, here we do not sell but "rebalance".
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Old 05-27-2014, 10:26 AM   #4
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What does "sell" mean again? I'm not quite retired so am still buying. In fact, over the last 25 years I have rarely sold anything.

Looking forward to selling in maybe three Mays from now.
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Old 05-27-2014, 10:39 AM   #5
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I don't know about every year, but you did ask this in 2011: Sell in May and go away !

I really doubt the answers are going to change much, so while you're waiting you might as well review what people said last time.
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Old 05-27-2014, 10:41 AM   #6
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I'll usually sell off a bit if the market runs up enough that I need to rebalance. And usually, I end up selling off some in the Spring. Although it's not always in May.

But I've always taken "Sell in May and Go Away" to mean that some people sell off EVERYTHING, park it in MM accounts or whatever, and then buy back in around September. I'd worry about being out of the market though, in case something good happened in that timeframe. And, I'd imagine that taxes and commissions could eat heavily into any profits.
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Old 05-27-2014, 10:47 AM   #7
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Maybe I should rephrase the question to "Rebalance in May and go away."
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Old 05-27-2014, 10:48 AM   #8
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Quote:
Originally Posted by A Bird In Hand View Post
I don't know about every year, but you did ask this in 2011: Sell in May and go away !

I really doubt the answers are going to change much, so while you're waiting you might as well review what people said last time.
Thanks ABIH, the mind is not as sharp these dazes !
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Old 05-27-2014, 10:49 AM   #9
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May is about over. Need to sell rebalance fast, before it is June.

Seriously, I do not change my AA much nor go away, but always keep my eyes peeled for sector rotation. There are always sectors that go up and down, and I keep looking to rebalance between them.
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Old 05-27-2014, 10:58 AM   #10
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I'll bet there are some on here who claim to never change allocation, but when the market drops big they come back and tell you how they took equity $s off the table and avoided the big hit
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Old 05-27-2014, 10:59 AM   #11
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Change that tune and sell in June?
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Old 05-27-2014, 11:18 AM   #12
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If many people followed that rule, the smarter ones would sell in April.
And even smarter ones would anticipate that and sell in March.
Etc., etc., ad nauseam.
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Old 05-27-2014, 11:19 AM   #13
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Quote:
Originally Posted by DFW_M5 View Post
I'll bet there are some on here who claim to never change allocation, but when the market drops big they come back and tell you how they took equity $s off the table and avoided the big hit
I actually did that in late 2008. I was holding stocks with very high beta, e.g. companies in material sectors that were heavily dependent on the growth of China's economy. If I did not sell, I would be in deep doo-doo. It was a major worldwide economic catastrophe back then, not your average summer doldrums.

And I can point to past posts when I was selling in late 2008, then rebought in different sectors in 2009.
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Old 05-27-2014, 11:57 AM   #14
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Let's see.

As seems usual for rebalancers here, I have WRITTEN rules for when I can and should rebalance. I rebalance:

(1) every year during the first week in January, when I withdraw the year's spending money
(2) when my equity percentage falls below 42.5% or over 47.5%.

As of today, my equity percentage is at 46.73%. Nope, not time. (yawn) Time for a nap. Doing nothing is easier for lazy investors like me.
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Old 05-27-2014, 11:59 AM   #15
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Don't Wellesley/Wellington do all that rebalancing for its shareholders?

And by the way, they do that year round, and whenever they feel it's necessary I think.
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Old 05-27-2014, 12:01 PM   #16
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I am done for the year finished taking LTCG for 2104, converted to Roth, now I just have to wait until December. I just hope VTI and VXUS throw no CG and have appropriate qualified dividend %'s. All my bonds/balanced stuff is in tax deferred/free accounts.
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Old 05-27-2014, 12:04 PM   #17
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Don't Wellesley/Wellington do all that rebalancing for its shareholders?

And by the way, they do that year round, and whenever they feel it's necessary I think.
Oh, NW-Bound. The percentage equities in both at any given time is easily available and of course used in determining when to rebalance. Of course if someone has only ONE fund, then I guess rebalancing is no more an issue than if you had the entire portfolio in gold.
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Old 05-27-2014, 12:06 PM   #18
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It is a fun topic. Here's a calculator to help you decide.
Sorry for the naked link.
http://www.moneychimp.com/features/monthly_returns.htm
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Old 05-27-2014, 12:08 PM   #19
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I was just asking, as I thought one would not have to do anything holding these funds.

As it is, I have to look at my Quicken screen every day, actually several times a day, to see how my individual stocks are doing. I enjoy it actually, just like I enjoy sweep testing my loudspeakers, and test meat thermometers.
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Old 05-27-2014, 12:17 PM   #20
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I was just asking, as I thought one would not have to do anything holding these funds.

As it is, I have to look at my Quicken screen every day, actually several times a day, to see how my individual stocks are doing. I enjoy it actually, just like I enjoy sweep testing my loudspeakers, and test meat thermometers.
I just entered 0.3888 into the appropriate cell in the spreadsheet I use for rebalancing, since Wellesley was (as of 4/30) 38.88% equities. It's pretty easy. I only have 30% Wellesley and less than 1% Wellington. I love watching my funds go up and down, although I don't have any individual stocks to watch.

On the other hand, testing meat thermometers sounds incredibly boring. I'd rather browse Amazon.
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