June 2012: A Nickel Ain’t Worth a Dime Anymore

“A nickel ain’t worth a dime anymore.” – Yogi Berra

To many individuals, the adage “Sell in May, and go away” is a familiar rhyme. Its meaning refers to selling one’s investments in the month of May and buying them back at lower prices after an expected summer lull. With the market down in May this may appear to be sagacious advice, especially for those who invest based on cute and catchy tales. The original saying, likely coined by London traders in the early 20th century, was: “Sell in May, come back on St. Legers Day”. These traders, preoccupied with their summer social schedule, would sell their positions, only to return in mid-September after St. Leger’s Day, which marked the end of the summer holiday with a horse race. This was hardly an investment strategy.

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