Almost everyone has heard the saying, 'Sell In May and Go Away' before, however you may now realize how powerful this is until you actually see the hard data/statistics. Below I inserted a detailed table of statistics, please take the time to study them in detail.
The table below is of the Dow Jones going back to 1950 and is divided into three columns with an initial invesment of $10,000: The column on the right shows shows how the $10,000 grew over time via just simple buy and hold, while the other two columns spilt this $10,000 invesment into two 6 month time frames of the year. The Left hand column shows what would happen if you invested $10,000 in the Dow Jones from 1950 to present ONLY during the May1 - Oct 31 six month time frame of the year, while the middle column shows the results if you invested the $10,000 into the Dow Jones in the other 6 months of the year from Nov 1 - April 30th.
The results are quite astonishing: If one invested $10,000 into the Dow Jones ONLY from May 1st - Oct 31st and starting from 1950 to present, you actually LOST money over 62 years!!
Now putting this into contrast, if you had invested the $10,000 into the other 6 months time frame (Nov 1 - Apr 30th), that $10,000 turned into $880K! Wow quite a different.
Lastly, if you simply invested your money into the Dow Jones from 1950 - present, your $10,000 grew into $726K (minus dividends of course), which is less than if you had your money invested in the Dow from Nov 1 - Apr 30th on 6 months of the year!
What this table and statistics show you is that the historically the market has made the majority of its gains in one 6 month time frame of the year (Nov 1 - April 30th).
Lastly, do NOT treat this a mechanical system, however simply use this data as a powerful market statistic
(please note, the table below will NOT be updated daily or weekly, only during each 6th month time frame i.e. after April 30th and Nov 1st)