Is It Best To ‘Sell in May and Go Away’ Amid Tariff Volatility? Experts Explain
From Yahoo Finance: 2025-05-07 08:01:00
Investors may find solace in the age-old advice to “sell in May and go away,” suggesting selling stocks in May and waiting until fall to buy again. Some, like Robert Kiyosaki, are shifting away from gold and silver investments. However, experts caution against this strategy, especially during uncertain times like Trump’s tariff plans.
The rationale behind selling in May is to avoid the historically weak month for stocks, with May being the fifth-worst month for returns. The volatility brought on by Trump’s tariffs has led to drastic market fluctuations. Despite recent market gains, experts advise against blindly following the “sell in May” strategy, emphasizing the importance of assessing current market conditions.
While the strategy has its merits, experts caution that historical trends don’t always guarantee future outcomes. Fidelity points out that stocks tend to perform well throughout the year, casting doubt on the effectiveness of selling in May. While market volatility persists, some investors see opportunities in buying quality stocks at lower prices.
Political and economic uncertainty further complicates market predictions, making it challenging to determine the best course of action. Experts advise against making hasty decisions based on calendar-based trading theories, emphasizing the importance of staying informed and adaptable in the ever-evolving market landscape.
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