Historically, June is the third worst month of the year for the S&P 500, trailing only September and February in terms of average performance. That means when investors talk about the “Sell in May” strategy, what they really mean is this: you want to be out before June 1.
This year, the warning signs are flashing even brighter than usual. Sentiment has flipped from fear to greed in record time. Economic data is deteriorating under the surface. And geopolitics, rate path uncertainty, and election-year volatility are throwing in an extra layer of unpredictability.
So, should investors run for the hills this June? Not necessarily.
This post originally appeared at Money Morning.