This Data Explains the Phrase “Sell in May and Go Away”

Key takeaways

• Since 1950, the S&P 500 has typically performed worse in the months following May
• This period of underperformance usually concludes after September, which is historically the worst month

Should you actually sell in May?

The simple answer is probably not. 

We included last year’s monthly returns in this graphic to show you why historical averages aren’t everything. In 2024, May and June were two of the strongest months of the year. 

This is why many investment professionals recommend a more stable, long-term approach.

Another common phrase is ‘time in the market beats timing the market’, which implies that over longer timeframes, it’s better to stay invested.

Check out this Visual Capitalist graphic to learn more.