“Sell in May and go away.”
This well-known stock market saying pops up every year around this time – and on the surface, it seems like sound advice. After all, dating back to 1945, the S&P 500 has gained around 7% on average from November to April and just 2% from May through October.
But does that mean you should sell all your stocks on May 1 every year and jump back in on Halloween?
Not quite.
In his latest “Top 3” video with our colleagues at MarketBeat, Chief Income Strategist Marc Lichtenfeld explained why “sell in May” doesn’t make sense for most investors.
What does make sense, he says, is avoiding three specific stocks right now.
I’ve included a sneak peek of each one below (Marc shares the names, tickers, and details on all three in the video):
- A healthcare company that’s facing fierce competition and is in “a total downtrend with no signs of letting up”
- A household name in the consumer staples sector that’s “going nowhere”
- A reckless AI spender that Marc says “is going to be a train wreck.”
In addition to his three stocks to avoid, Marc covered a number of other topics during the interview, from the current market to contrarian investing to what he says are the “four most dangerous words in the stock market.”
To watch the full video, click the image above.
