There is an old saying on Wall Street: Sell in May and Go Away. This saying means that stock prices typically do not do well over the summer months. A blogger at the Wall Street Journal explains the reasoning: What s up with Sell in May and Go Away ? T

a. Sell in May and Go Away is an example of a pricing anomaly. It is a market anomaly that refers to the trend that the stock market tends to have lower returns during the summer months than during the winter months. b. If Sell in May and Go Away is a pricing anomaly, one way to earn an above-average return would be to sell stocks in May and buy them back in September, taking advantage of the lower prices during the summer months. c. It is not clear if pricing anomalies will persist over time. Some studies have suggested that certain anomalies can persist for years, while others can disappear as more investors become aware of them and trade on them. Therefore, it is important to be cautious and do thorough research before making investment decisions based solely on pricing anomalies.