JPS Global Investments Newsletter Volume 6, Issue 3: The Quarter in Review (10/12)
“Sell in May and go away,” an old Wall Street adage that suggest one is better off getting out of the stock market in May and coming back sometime after the summer, though when exactly is not entirely clear. This would have worked nicely in 2010 and 2011 and 2012 seemed set to repeat the pattern. However, it didn’t. At the beginning of May, the S&P 500 Index stood at 1,397 and by June 1st it had dropped to 1,278, but then the tide slowly turned, as would only become clear in retrospect, and the S&P 500 ended up at 1,440 at the close of the third quarter, up 5.7%. Though I agree that the market is inefficient, I don’t believe it is so inefficient that investors are well served to sell in May, or sell because an original AFL team wins the Super Bowl, or other variants of reading the tea leaves. Investing is hard and humbling work and unfortunately I don’t know of any short cuts.
JPS Global Investments Newsletter Volume 6, Issue 2: The Quarter In Review
As we have seen many times before over the last couple of years, the news out of Europe cast a dark shadow over global markets, with sentiment turning tentatively positive yet again towards the end of the second quarter. Whether this time is different, time will tell. The core of the issue remains constant: Germany and its northern allies don’t want to write a blank check to periphery Europe without safeguards that involve ceding power over national budgets and banking oversight from national governments to EU institutions. Once these powers become European rather than national, Germany believes it will have greater leverage to enforce fiscal austerity and balanced budgets.