CHICAGO, May 20 (Reuters) – It used to be easy to abide by
the old Wall Street nugget that you should pull out of the
market in spring and come back in the fall.
But research shows that it doesn’t make sense to completely
abandon the stock market during the summer months, particularly
when it comes to individual sectors. Not all of them will
There are several ways to seize gains if you want to make
some portfolio adjustments. Here are two approaches.
For those who remember the nasty summer of 2011, when stocks
got blistered by European and U.S. debt fears, it didn’t hurt to
be in dividend-paying companies that Wall Streeters consider
defensive plays. While not immune from market declines, their
prices tend to hold up better than for non-dividend payers.
According to the Leuthold Group, holding defensive stocks
from May to October yielded a nearly 16 percent gain since 1990
(through April 2013) compared to 9 percent for the Standard &
Poor’s 500 index.