It appears investors are deploying the adage “Sell in May and go away” this year and who could blame them.
The markets will be facing unprecedented turmoil this summer as the White House will be bringing criminal charges against many former Obama administration officials for illegal spying on many Americans.
While most market pundits cite the ongoing trade negotiations with China as the most vexing problem for stocks and bonds, those investors in the know figure to put some money on the sidelines until the extent of the Spygate probes becomes more transparent.
In the beginning of May the Dow Jones industrial average stood at 26,592 as a point of reference. Could we see Dow 20K in July? Hard to know for sure, but as news of the spying scandal becomes more apparent to Main St. we could see that level before a bounce back.
Be wary of the booms in the markets.