Monday 7 May 2012

Merry, Merry May..................from Rico

There is an old adage among investors "sell in May, and go away" which describes the seasonal equity market weakness typical to this time of year through Summer and into the Fall.
- This year, we have incredible debt and leverage, hugely over-valued P/E ratios, raging unemployment, with housing values still sinking. Yup, whether bull or bear, this may be VERY apt investment advice for present circumstances.

BUT, what if I told you that you should instead "buy" in May?
- For the last seven years running, investors who bought Gold in May averaged +12.6% gains for each of those years.

Don't believe me. Look at this chart for yourself.
- Of course, Greek bonds are selling very cheaply these days or maybe you'd like to hold the bag....er, some nice Treasurys?

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