Read the Thursday Afternoon Wrap-Up for 6/6/2013 and the Thursday Morning Commentary for 6/7/2013
One of the biggest financial market myths is that of “Sell in May, and Go Away.” Frankly, it doesn’t even suggest prices will go down during the summer; but instead, that they will be lethargic and volume-less whilst CRIMINAL Wall Street bankers vacation in the Hamptons.
Generally speaking, volumes do in fact decline during the summer. However, regarding the potential for material price movements – and at times, early scrambles to the office via the Long Island Railroad or Hampton Jitney – HISTORY says otherwise. In other words, some of the most enthralling market rises – and cataclysmic plunges – have occurred during the summer months; which is why in June 2011, I wrote the following RANT…
Ranting Andy: “Summer Doldrums,” The Biggest Load of C–p Ever! – June 24, 2011
…and lo and behold; look what happened to the “DOW JONES PROPAGANDA AVERAGE” that summer…
…let alone, gold…
…and silver…
In fact, in recent years, nearly every summer has been eventful; for both the Dow and PMs. Here’s the Dow in the fateful summer of 2008…
…the “recovery summer” of 2009…
…and the PPT-inspired, Obama re-election campaign surge of 2012…
…while here’s what gold did in 2008 (a pittance of a decline, compared to the Dow)…
…2009…
…2010…
…and 2012…
In other words, assuming nothing will happen could – literally – be the difference between “financial life and death.” Now – more than EVER in our lifetimes – the risks of turning a blind eye to our portfolios are SKY-HIGH. Do not be surprised if the “Summer of 2013” is historic; and if it is, I ASSURE you it won’t be the “good kind” of historic.
