Emotions can be an investor’s worst enemy, causing them to buy at the top, sell at the bottom, and play “whack a mole” in between. However, extracting one’s emotions from the investment process has shown to improve performance and reduce volatility. For instance, “Sell in May and Go Away” is an old Wall Street axiom reminding investors that the S&P 500 has produced an average November-through-April price return that beat the average May-October performance by a more than a 5:1 margin. Taking this adage one step further, Sam Stovall, U.S. equity strategist at CFRA and author of The Seven Rules of Wall Street, found that investors would have done even better by rotating, and not retreating. Come hear Sam discuss sector rotation strategies that leverage seasonality, momentum and correlation.
Indexes are unmanaged. It is not possible to invest directly in an index.