Bank of America advises investors to ignore the ‘sell in May and go away’ axiom and hold strong this year. Here's why

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For those who judge successful fiscal folklore, May has agelong been the period to exit equities.

According to fashionable Wall Street wisdom, it's safest for banal investors to skedaddle successful the spring, bask immoderate summertime prima and past bargain backmost equities astir Halloween.

But a caller Bank of America study took a caller look astatine this "sell successful May and spell away" strategy, and analysts accidental it astir apt won't enactment successful 2026.

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According to Business Insider, the Bank of America's strategists didn't spot convincing grounds successful 98 years of S&P 500 information that investors volition miss monolithic downspells by selling truthful aboriginal (1).

If anything, radical who blindly "sell successful May" could miss retired connected other gains.

Granted, the S&P 500's mean summation was comparatively debased astatine 2.4% betwixt May and October, but things look a batch antithetic erstwhile you shorten the timeframe. As Bank of America discovered, astir of the symptom for stockholders took spot successful the aboriginal months of August done October, which had an mean diminution of 0.2% (2).

The "sell successful May" mentation is adjacent weaker successful 2026 due to the fact that it's the 2nd twelvemonth of President Donald Trump's term.

Looking astatine anterior statesmanlike cycles, the Bank of America recovered that the S&P 500 has a beardown bullish bias during this period, with a 60% accidental of affirmative terms enactment successful May.

Data was adjacent much affirmative for the tech-heavy Nasdaq 100, which posted May gains of astatine slightest 2% successful astir 70% of akin periods (3).

With each of these findings, Bank of America suggested changing Wall Street's classical rhyme to the acold little catchy, "Buy successful May and merchantability successful July/August."

Is banal seasonality conscionable a superstition?

Buying and selling banal solely based connected the calendar whitethorn look silly, but immoderate statistic enactment aspects of the seasonal inclination theory.

Most notably, there's a batch of grounds that shows September genuinely is the scariest period for banal investors.

RBC Wealth Management tracked the S&P 500's show backmost to 1928 and recovered that there's an mean September diminution of astir 1.2% (4).

A 1% driblet whitethorn not look similar the extremity of the world, but it's the consistency of September slumps that makes it a deservedly detested month.

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