Its that time of year you simply must consider the seasonality of stocks.
For whatever reason, and there are many theories, stocks tend to underperform by a lot from May to October but rally through the late Fall into Spring.
The chart above, created by Eagle Bay Capital’s JC Parets (AKA: All Star Charts) displays the returns of holding only during the approaching worst 6 month period vs the best six months which are winding down as we type.
JC writes,

If you use the Dow Jones Industrial Average and go back to 1950, the statistics are simply staggering. Hypothetically, had you invested $10,000 but only owned stocks between November 1st through April each year, on April 30th of 2013 that $10,000 would have been worth $775,055. That’s pretty awesome. Now, had you done the exact opposite and purchased the Dow Industrials every year on May 1 and sold on Halloween, you would have actually lost $687 over the past 63 years.

So go to a baseball game or maybe go fishing but stay light in equities…
Source: Let’s Talk About “Sell in May and Go Away” JC Parets High-res

Its that time of year you simply must consider the seasonality of stocks.

For whatever reason, and there are many theories, stocks tend to underperform by a lot from May to October but rally through the late Fall into Spring.

The chart above, created by Eagle Bay Capital’s JC Parets (AKA: All Star Charts) displays the returns of holding only during the approaching worst 6 month period vs the best six months which are winding down as we type.

JC writes,

If you use the Dow Jones Industrial Average and go back to 1950, the statistics are simply staggering. Hypothetically, had you invested $10,000 but only owned stocks between November 1st through April each year, on April 30th of 2013 that $10,000 would have been worth $775,055. That’s pretty awesome. Now, had you done the exact opposite and purchased the Dow Industrials every year on May 1 and sold on Halloween, you would have actually lost $687 over the past 63 years.

So go to a baseball game or maybe go fishing but stay light in equities…

Source: Let’s Talk About “Sell in May and Go Away” JC Parets

Loved Kevin Roose’s new book Young Money.

Following a small group of young bankers on Wall Street post credit crisis, Its one of those reads that’s hilarious, horrific & insightful.

Roose joined Yahoo Finance editor in chief Aaron Task for a lively YahooTV session and you can enjoy the interview above… 

Related

Kevin’s Book: Young Money

Young Money Excerpt via NPR

The full post up on Yahoo Finance: Working on Wall Street is a dystopian nightmare: Kevin Roose

Track

a16z podcast: Evaluating Valuations

Andreessen & Horowtiz’s Marc Andreessen, Chris Dixon and Ben Evans discuss tech valuations, sentiment, generational investment cycles and whether we have entered a new tech bubble.

Smart stuff.

Another entry in the world of amazing bionic creatures…

fastcompany:

Meet The Amazing, Hopping Bionic Kangaroo

As it bounces through the Australian outback, the typical kangaroo can cover around 25 to 30 feet per hop. It’s a model of efficiency: Every time the kangaroo hits the ground, its tendons stretch to store energy like the spring in a pogo stick, so it can easily speed up without getting tired. It’s so good at hopping, in fact, that for the last two years, a German company called Festo has been secretly developing a robot that tries to copy everything a natural kangaroo can do.

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3 sectors to watch in an aging bull market

Many believe we are in the midst of an ongoing bull. Paul Schatz of Heritage Capital is one of these prognosticators, but senses our current bull market is getting close to be sent out to pasture. “The Bull market is old, and it’s wrinkly, but it’s not over yet,” Schatz opines in the attached video. “The bull market is transitioning to its final phase which is normal, bull markets don’t last forever.”

With that in mind, there are 3 sectors Schatz likes as the current bull market heads off into the sunset.