Seasonal Stock Market Patterns: Weighing the Sell in May Strategy Against Long-Term Investing
• Historical data shows the S&P 500 index tends to perform better in the early and late months of the year compared to May-October
• The "sell in May and go away" strategy could have avoided losses in 2022 but missed big gains in other recent years
• It's risky trying to time the market - buying and holding stocks long-term is a better strategy
• If the market cools off, diversifying into an ETF like Vanguard Growth (VUG) reduces risk exposure
• Over the past decade, VUG has substantially outperformed the S&P 500 index while carrying less risk