“Sell in May and go away, come back on St Ledger Day [September 15th]” is an old stock market saying suggesting summer slumps are caused by the idle rich going on holiday, causing a large drag on the market. While this might have been true in the old days, especially in Europe, it seems unlikely that in today’s technological world, this seasonal feature can simply be caused by the middle and upper classes skiving off for the school holidays. So is another summer slump expected?
Experts said any gains in 2012 will be tempered as jittery investors face a growing number of challenges, especially a dimming outlook in Europe and uncertainty over the United States’ political and fiscal future. Nearly half of those surveyed highlighted Europe’s ongoing debt crisis as the market’s biggest headwind.
Brought to you by Tim Manery, B. Comm., DFA, M2 Financial Solutions