Contrary to conventional wisdom, here are five reasons to BUY in May and go away. Returns of 20% or more often lead to further double-digit returns. Last year's 30% profit may presage another year with double-digit growth.
Here is the history of stock markets with 20% returns:
1. The rally in 1975 - 1976 (the 32% return preceded a 19% return)
2. The strong returns in 1985 - 1986 (26% then 15%)
3. The historic rally from 1995 - 1999 (returns of 34%, 20%, 31%, 27% and 20%)
4. The strength from 2003 - 2004 (26% then 10%)
5. The bull market in 2009 - 2010 (23% then 13%)
Once the public realizes that a recession is finally over, it gradually eases back into the stock market. Last year's 30% return does not guarantee that this year will be poor.
In fact, it may be a wake-up call to those who are not yet in the market.
Here is the history of stock markets with 20% returns:
1. The rally in 1975 - 1976 (the 32% return preceded a 19% return)
2. The strong returns in 1985 - 1986 (26% then 15%)
3. The historic rally from 1995 - 1999 (returns of 34%, 20%, 31%, 27% and 20%)
4. The strength from 2003 - 2004 (26% then 10%)
5. The bull market in 2009 - 2010 (23% then 13%)
Once the public realizes that a recession is finally over, it gradually eases back into the stock market. Last year's 30% return does not guarantee that this year will be poor.
In fact, it may be a wake-up call to those who are not yet in the market.
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