Traditional Sell in May strategy no longer applies, Eric Balchunas notes

Traditional Sell in May strategy no longer applies, Eric Balchunas notes
Sell in May rule questioned for ETFs

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, questions the relevance of the old "Sell in May" market adage.

He observes that the saying originated when 19th-century London's financial elite would leave trading floors for summer retreats. In today's environment, with algorithm-driven markets and continuous trading, Balchunas points out that the S&P 500 ETF (SPY) has delivered positive returns in 25 years, challenging the notion that investors should exit markets in May.

Balchunas previously reported that ETF closures have increased as issuers liquidate younger funds, with average ages at liquidation dropping this year. He has also discussed how binary outcome ETFs may help investors simplify strategies when betting or hedging on market reactions. These recent observations tie into his broader coverage of ETF trends and investor behavior.

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