Sell in May

Monday, stocks rose 0.9% in Asia and 1% in the U.S. on light volume but closed nearly unchanged in Europe. The VXO fell 8% to close at 14.58. Precious metals miners gained about 2% while the 10-Year U.S. Treasury Bond yield gained 3% to close at 1.75. At least part of the reason for the gain of the day was news that Warren Buffett has been buying AAPL propelling the stock upward for a 4% gain.

Tuesday, stocks rose again in Asia — this time 0.8%. Also, again in Europe stocks closed nearly unchanged. But in the U.S. stocks fell 0.7% on moderate volume. The VXO moved up 7% to close at 15.71. Precious metals rose 1% and their miners gained about twice that amount. One key market mover for the day came from Federal Reserve officials.
Should you sell in May this year? Here’s an article that analyzes that question and boils the question down to whether or not the potential reward is worth the risk.

Wednesday, stocks closed down 0.4% in Asia, up 0.8% in Europe, and down slightly in the U.S. on light volume. The 10-Year U.S. Treasury Bond yield shot up 8% to close at 1.88. Precious metals lost 3% and their miners were hammered 8% lower. What was the catalyst this time? The FOMC notes indicated that a June rate hike was likely.

Thursday, More talk of imminent and frequent rate hikes spooked Wall Street bulls and sent stock prices south. Stocks fell around the world — closing down 0.8% in Asia, 1.2% in Europe, and 0.5% in the U.S. on light volume. Stocks rose Friday — Asia up slightly, Euope up 1.3%, and U.S. up 0.6% on moderate but abysmal volume considering it was an options expiration day. The VXO fell 7% closing at 15.26

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