The adage "SELL IN MAY AND GO AWAY" has been an investment pattern for some while others believe you cannot time the market but to stay invested at all times.
Why people tend to sell in May? There are some reasons
1) Plans are usually formed at the beginning of the year or just at the turn of the year. The hiring of new employees, the new project or the new joint venture. And by May things are more settled. Fatigue sets in. So a break is needed.
2) Ha! in Northern Hemisphere like London & New York Fund Managers are looking forward to a nice summer holiday. So they better start selling. As leaving the Office for a stretch of 2 weeks to a month might leave the unmanaged fund vulnerable without hands on engagement. But those were the days before the invention of iphone. For now anyone can keep in touch with the market anytime, anywhere. Yet the need for quality time with loved ones call for a short period of disengagement with work.
3) The sell off in May might accelerate by individual investors who also sell for needed funds to buy air tickets, book into resorts by the seaside or just go traveling. So they sell in May and go away for a good reason. After all students in school have recesses and office workers have lunch breaks. So The June Holidays is just an extended longer holiday break.
4) This is what the Bible says, "To everything, there is a season, and a time to every purpose under the heaven;
A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted A time to kill, and a time to heal; a time to break down, and a time to build up; A time to weep, and a time to laugh; a time to mourn, and a time to dance; A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing; A time to get, and a time to lose; a time to keep, and a time to cast away; A time to rend, and a time to sew; a time to keep silence, and a time to speak; A time to love, and a time to hate; a time of war, and a time of peace
"He has made every thing beautiful In His Time; also He has set the world in their heart, so that no man can find out the work that God makes from the beginning to the end"
God clearly states here that
1) TO EVERY THING, THERE IS A SEASON 2) AND A TIME TO EVERY PURPOSE UNDER THE HEAVEN
Last Friday, Being the Last Trading Day of April these blue chips were sold down by fund managers - Public Bank, TNB, UMW, KLK, PPB, PETDAG, PETGAS, MAYBANK & Others.
However, in the rushing torrent of water gushing downward in a water fall there are some fishes that can go against it. Salmon & Trout Swim Up River to spawn. They can swim upward, leap upward and overcome barriers which other fishes could not do.
So the 11MP Stocks Will Go Against the trend of sell in May. So while others are sold down in May NAIM (Never Afraid In Meltdown) Will Go Up In May.
On 21st May 2015 The 11MP Will Give Naim a Powerful Booster by A New Award of Projects
Hi Calvin! Your quote from the Bible that we are governed by the seasons. There is also in Genesis, about Joseph's prediction to the Phaeroh, of seven years of plenty followed by seven years of famine. Are you aware of Martin Armstrong and his Economic Confidence Model or ECM from which he forcasts the world and financial markets? (Google `Armstrong Economics'). Currently, there is a documentary entitled `The Forcaster' on his life, works and predictions, which is taking Europe by storm. Whatever he had predicted in the past have proven to be accurate. There is a big one (if not the mother of all his predictions) slated for 1st October 2015. With your knowledge of the Malaysian financial market, your comments will be of interest to readers of i3investor.
For those who are reading about Martin Armstrong for the first time, you may most likely be fascinated by his life story to date. I just hope that you'll take him seriously. He may save you from financial grief in the near future.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
56,606 posts
Posted by calvintaneng > 2015-04-29 08:56 | Report Abuse
Good news.
In Star papers today.
Kkb is bidding over half a billion ringgit project in Sarawak.