As the calendar has turned to May, the popular “Sell in May and Go Away” stock market cliché is getting a lot of airtime. This is the idea that the stock market tends to be weakest between May and October (and strongest between November and April). Stocks have done so well recently that preparing for a pause in the rally makes sense. A lot of good news is priced into stocks. Worries about the Federal Reserve tightening its monetary policy may intensify this summer as inflation picks up, potentially pushing interest rates higher. Tax increases are probably coming in 2022, and deficit spending continues largely unabated.
Alana Macy, CFP®
Alana Macy is a Certified Financial Planner® with Bloom Wealth Advisors. She has written widely on themes in financial wellbeing, drawing from professional and personal experience. To learn more about Alana, please click here.
Amy Noel, CFP®, MBA
Amy Noel is a Certified Financial Planner® and founder of Bloom Wealth Advisors. She is a thought leader in retirement planning and wrote a retirement workbook used in CFP® courses around the country. Her expert perspective has been featured in publications by The Wall Street Journal, Newsweek, and USA Today. To learn more about Amy, please click here.