Sell in May and go away returns: This strategy will not work; here is how you can benefit
The ‘Sell in May and go away” adage is based on an assumption that stocks typically underperform during May-October period. But research does not lend much credence to that assumption. A close examination of the performance of NSE Nifty index over past twenty years suggests that in fact, May has offered a decent buying opportunity for investors. In 75% of the times, year-end returns as calculated from May lows has been positive.
Data compiled by ICICI Direct Research shows that for all calendar years between 1998 and 2017, buying at the lows hit in May has generated positive gains in 15 out of 20 times. Image source: IANS