The Great Debate UK
-David Kuo, Director at the financial website The Motley Fool. The opinions expressed are his own.-
It wasn’t supposed to happen. Shares were not supposed to rise between May and September. That is if you believe the old stock market adage that says you should sell in May and go away, and don’t come back until St Legers Day.
However, if you had heeded the advice this year, you would have missed a 13 percent jump in shares during the summer months. Other great times to have ignored the adage were in 1987, 1997 and 2005 when shares jumped 15 percent, 18 percent and 14 percent.
But before we dismiss the adage entirely, there appears to be some grain of truth to the quaint saying that has its roots in London’s sewers rather than London’s financial district.