Beware of old dealing myths: Go away in May
The market has many snappy but out-of-date sayings that are a hangover from other centuries. These are regularly quoted and although many are now meaningless, some people have not learnt to ignore them. Some sayings are an accurate summary of market conditions and they can point the way to some opportunities.
At this time of the year we hear "Sell in May and stay away". It is market idiom and it sounds profound. The dramatic fall in the US market last week gives credence to the saying.
The original saying was "Sell in May and go away but come back on St Leger Day". May was the start of the English summer social season for the rich involving holidays, polo, cricket, trout fishing, croquet, racing, tennis, hunting and boating. The holiday season ended with the running of the St Leger Cup in early September.
