When Is The Best Time To Evaluate Your Portfolio?

Mar 25 2019

When Is The Best Time To Evaluate Your Portfolio?

Financial Portfolio Advice

Sell in May and go away?

The saying goes, “Sell in May and go away”. This strategy has been utilized by many individual investors looking to exit the securities market for the so-called, “slower months”. According to the Stock Trader’s Almanac, since 1950, the Dow Jones Industrial Average has had an average return of only 0.3% during the May-October period, compared with an average gain of 7.5% during the November-April period.

So is this the time to walk away from the markets?

2013 may be the exception to this dated-cliché-catch phrase. With half of the 2013 year behind us, we have seen recent events (and some pending) that can be an opportune time for investors to capture some profits. Here are a few headlines that should affect everyone’s portfolio:

– Crude oil at a 16-month high
– Gold hitting a one month high, rebounding from the atrocious performance last month.
– Detroit being the 8th – US Municipality to file for bankruptcy, owing over $18-billion dollars.
– Earnings season is here with approximately 1/3 of S&P500 companies expecting to report earnings this week.
– The G20 meetings this past weekend provided some positive markets. The move to place growth before austerity to revive the global economy, which was stated as being “too weak”.

With so much happening in the financial markets, leaving your portfolio by “going-away” until November may be working adversely to your investment strategy. The multiple earning’s reports’ due in the next 2 weeks will give investors an indication of where the US economy is headed.

This may be the best time to evaluate your portfolio.

David Hoang, Institutional Trader, The Elco Group