Each spring, the old investing adage “Sell in May and go away” starts making its rounds. But does seasonal market timing actually hold up, and is it worth the risk of stepping out of the market? Our CIO Nathan Hoyt doesn’t think so.

“If you sell in May, what do you buy that outpaces the historical 3 percent annualized returns until October? When October arrives, risk doesn’t magically disappear, even if you are disciplined enough to re-invest,” Hoyt said. “Seasonality trends are easy to spot and thus a tempting trap that investors fall into thinking they can time the market, unlike the rest of us. I wouldn’t ask my clock or my calendar to predict the future.”

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