Sell in May and go away?
This well known adage is based on the historical underperformance of some stocks. The theory basically states that many traders are on summer vacations and therefore the reduced activity causes reduced stock prices. However in recent years, especially 2016, this would have been a huge mistake as the market rose 10%. Trying to time the market, based on these types of strategies could work or might not. I have tried to time events and have chased last year's winners and I have found the best policy for total return and peace of mind is to do nothing.
May was another month that at various times would tax your resolve to stay the course. A few ups and downs but generally the month was positive. Our fund, VDADX, was up from April month end, 27.64 versus 27.17.
SCORECARD
Willie had a month end balance of $193,579.56. His monthly benefit check (including the COLA) would be $2,160.92 if he changed his mind and decided to file for benefits at this time.
Irma deposited the $2011 check and withdrew $2413 from her existing account, so her net total is $218,496.97.
Sam used his benefit check to supply $1583.24 of his monthly expenses. His untouched IRA account sat at $219,190.99.