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May 6, 2023 | Tech Talk for Saturday May 6th 2023

Donald Vialoux is author of the free blog Tech Talk, a daily investment report available during the past 20 years at Comments focus on the seasonal and technical outlook for equity indices, commodities and sectors. Mr. Vialoux has 53 years of experience in the investment industry and is a past president of the Canadian Society of Technical Analysts (CSTA).

The Bottom Line

Sell in May and Go Away? Not exactly! The expression is based on expectations that U.S. equity markets peak in the first week in May and bottom at the end of October. The expression is partially true: Most of the gains by the S&P 500 and Dow Jones Industrial Average since 1950 have been realized from November to May: Relative small positive returns and, more important, higher variable returns are realized from May to November, a period known for its greater than average volatility and lower than average volume. Despite lower performance by broadly based U.S. equity indices during the May to November period, seasonal investment opportunities in U.S sectors and individual equities exist including investments in precious metals, biotech and selected utilities and consumer staples industries. In addition, long term U.S. government bonds have recorded favourable seasonal returns from May 8th to August 28th.

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May 6th, 2023

Posted In: Tech Talk

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