Sell in May (update)

An update on the Sell in May Effect (also called the Six-Month Effect, or Halloween Effect in the US).

In the six months Nov 2015 to Apr 2016 (Winter period) the FTSE All-Share Index fell 1.8%. Previously, the Index had fallen 7.3% over May 2015 to Oct 2015 (Summer period).

The outperformance of the Winter market over the Summer market was therefore 5.5 percentage points, which supports the Sell in May Effect.

The following chart shows the outperformance of the FTSE All-Share Index in the Winter period over the previous Summer period since 1982.

SIM Outperformance of winter over previous summer market [1982-2016]

In the 16 years since 2000 the Winter market has outperformed the previous Summer market 11 times, with an average outperformance of 5.2 percentage points.


Other articles on the Sell in May Effect.

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