Sell in May and Go Away 2011 Market Crash – Part 1
The cliché to “Sell in May and Go Away” seems to be on investors minds once again. Evidence is accumulating that the stock market has hit an intermediate-term peak amid the deepening European sovereign debt crisis, signs of slower U.S. economic growth and the imminent end to the Federal Reserve’s liquidity injections.
After a 3.9% gain in April 2011, the Dow Jones Industrial Average struggled in May 2011 with growth concerns, falling 1.8% in value. In May 2010, when stocks took their biggest tumble since 1940 (falling 7.9%), the market continued to sell-off another 4.4% into early July — and the concerns are the same, European debt and soft U.S. economic indicators.
With the start of June 2011 upon us, the Dow Jones is already down 3.3% and indicators are not pointing for the markets to go up any time soon. In fact, investors would have been better off not trading Stocks in June with the last 6 closing down on the month.
June 2010 – Down 3.5%
June 2009 – Down 0.6%
June 2008 – Down 10.1%
June 2007 – Down 1.6%
June 2006 – Down 0.1%
June 2005 – Down 1.7%
So, what are other Stock Market pundits saying?
Although the Dow Jones is down 3.9% since the end of May 2011 and down 3.3% so far in June 2011, that doesn’t mean it’s too late to Sell in May and Go Away right now. When the DJIA fell 10.1% in June 2008, it continued to fall another 3,797.12 points into November 2008 (down 33.4%) over the same concerns as of lately — European debt, economic growth, unemployment and Federal Reserve policies.
Tags: 2011 Market Crash, DJIA, Dow Jones, Dow Jones Industrial Average, Economic Growth, European Sovereign Debt Crisis, Federal Reserve, Federal Reserve Policies, Intermediate-Term Peak, Investors, June Stocks, Liquidity Injections, Market Pundits, Sell in May, Sell in May and Go Away, Stock Market, Trading Stocks, Unemployment