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Bridge over ocean
1 July 2013 Financial Analysts Journal Volume 69, Issue 4

“Sell in May and Go Away” Just Won’t Go Away

  1. Sandro C. Andrade
  2. Vidhi Chhaochharia
  3. Michael E. Fuerst

The authors performed an out-of-sample test of the sell-in-May effect documented in previous research. Reducing equity exposure starting in May and levering it up starting in November persists as a profitable market-timing strategy. On average, stock returns are about 10 percentage points higher for November–April half-year periods than for May–October half-year periods. The authors also found that the sell-in-May effect is pervasive in financial markets.

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