S&P 500 Records Best May Gain Since 2020, Defying ‘Sell in May and Go Away’ Adage

  • S&P 500 records its strongest May performance since 2020
  • Ed Clissold, chief strategist at Ned Davis Research, believes momentum leads price and a strong May increases the odds of a summer rally
  • In election years, S&P 500 has risen 77.8% of the time from April 30 to Oct. 31 with a median gain of 3.3%
  • Closely fought elections can put a damper on the market due to investor uncertainty
  • Since 2012, S&P 500 has risen 10 times out of 12 by a median of 3% in May
  • It’s too early to tell if ‘sell in May’ has been rendered moot

The S&P 500 has recorded its strongest performance in May since 2020, defying the popular Wall Street adage of ‘sell in May and go away’. Ed Clissold, chief strategist at Ned Davis Research, believes that momentum leads price and a strong May increases the odds of a summer rally. In election years, the S&P 500 has risen 77.8% of the time from April 30 to Oct. 31 with a median gain of 3.3%. Closely fought elections can put a damper on the market due to investor uncertainty. However, it’s too early to tell if ‘sell in May’ has been rendered moot.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about the S&P 500’s performance in May and discusses the historical trends of the ‘sell in May and go away’ adage. It includes expert opinions from Ed Clissold and Steve Sosnick on the subject. However, it briefly mentions Trump’s conviction which may be considered as a personal perspective rather than a universally accepted fact.
Noise Level: 5
Noise Justification: The article provides some relevant information about the S&P 500’s performance in May and its relation to the ‘sell in May and go away’ adage, but it also contains filler content such as unrelated historical facts about presidential elections and anecdotal evidence. The article could benefit from more scientific rigor and a clearer focus on the main topic.
Key People: Ed Clissold (Chief Strategist at Ned Davis Research), Steve Sosnick (Chief Strategist at Interactive Brokers)

Financial Relevance: Yes
Financial Markets Impacted: S&P 500 index, Dow Jones Market Data
Financial Rating Justification: The article discusses the performance of financial markets, specifically the S&P 500 index and its strongest May performance since 2020, as well as the potential impact of presidential elections on market trends. It also mentions historical data from previous election years and the ‘sell in May’ adage.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.marketwatch.com