Sell in June?

Investors lost big if they followed the strategy to 'sell in May and go away.'

By Motley Fool Investor Beat May 31, 2013 3:35PM

It was a rough month for investors who followed the old investing strategy to "sell in May and go away." The stock market hit new highs and the broader economy showed signs of strength.


What does the hot May mean for investors going forward? Should investors sell in June? In our lead story on Investor Beat, our analysts tackle those questions.


arrow upAlso making news during Friday's market action, and covered in Investor Beat:

  • Krispy Kreme's (KKD) first-quarter profits rise 33% and shares hit a 9-year high.

  • Guess (GES) moves higher on stronger-than-expected earnings.

  • And Lions Gate Entertainment (LGF) gains thanks to strong video sales of the "Twilight" series.

And we close Friday's episode with two stocks to watch. Charly is watching Sony (SNE). Ron is watching Nathan's Famous (NATH).


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9Comments
Jun 1, 2013 1:05AM
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How do you lose big if you sell your winners after they hit your targets and take the profits and enjoy your summer. Who wants to play this frick'n game all summer long?
May 31, 2013 8:18PM
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popping sounds coming from japan. who's next?
May 31, 2013 4:50PM
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All this sell in May or June or any other month is pointless. We can throw all the pass data points out the window. This is all now about the Global FEDS. Whenever the Global Printing Presses blow up in the Global Feds faces, this ends badly. Good luck on picking which month.
May 31, 2013 6:59PM
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Can't sell now. Cramer just declared it a bull market;)
May 31, 2013 5:24PM
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This is an artificial market created by Bernanke and Co. that now rises on bad economic news

and falls on good news. The Fed will break the US.

May 31, 2013 7:47PM
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I'd keep selling what's too high and buying something that's too low until there's nothing left worth owning.

Jun 1, 2013 11:01AM
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I am 66.  Remember 2008.  Look at prices on stocks. high. 800 million pulled out of mutuals this past week or more.  Whose making the money? Whose giving you advice?  Your gut say slow down and feel the tide.  That storm in Oklahoma was swift and devastating 15 minutes?  If your computer is not running in unreal spead then lookout.  I learned to respect the market.  Take a look what happened to Costco this week.  Up the hill and guess what?  you got hit by a Mack truck.  MY ADVICE:  Balance the portfolio of mutuals and get rid of risky stocks and sit back and take the ride Or would you rather get hit by a Mack truck?  
I'm a disabled military veteran I never saw it coming.
jerome 
May 31, 2013 8:36PM
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Gee the market dropped 208 today, I just can't wait to see what happens Monday. Now I wonder what you will write if the market slides 1000 points by July first? 
Jun 3, 2013 7:41AM
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If you have made 5% or more, if the company is not looking for huge growth and if you can't wait 5 years to recover, SELL NOW and pray.
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