The phrase “Sell in May and go away” is a famous seasonal phenomenon in the stock market, referring to the idea that investors should sell their stocks in May and return around October, as the summer period usually has lower market performance.
However, whether it happens this year (2025) depends on many macroeconomic factors and market sentiment such as:
Fed interest rate policy: If the Fed is leaning towards cutting interest rates or signaling easing, market sentiment may remain positive during the summer.
Inflation and employment data: If inflation rises again or the labor market weakens, investors may choose to take profits.
Geopolitical situation: Conflicts, upcoming US elections, or unexpected crises also affect capital withdrawal decisions.
Q1 2025 earnings results: If the results are poor or do not meet expectations, investors may start selling.
=> In summary: "Sell in May" may happen if the market has risen strongly beforehand and investors want to take profits, or when there are clear risk factors. But it is not always true, and in recent years this trend has not been as pronounced as before.
WHAT DO YOU THINK ??