The Globe and Mail reports in its Saturday edition that the kindest thing one can say about the old investing adage "sell in May and go away" is that it rhymes. The Globe's John Heinzl says that in 2024, for example, the S&P/TSX Composite Index surged 11.2 per cent from May through October, or about 12.9 per cent, including dividends. The strategy worked better in 2023 and 2022, as stocks fell in the spring and summer months, but in 2021 and 2020, the opposite happened. If you are keeping score, that is two of the past five years that "sell in May" worked as advertised, and three when it did not. In a non-registered account, buying and selling based on seasonal patterns could trigger taxable capital gains and drive up commission costs as well. And while you are out of the market, say goodbye to any dividends. Mr. Heinzl notes that the future is uncertain with the economically challenged U.S. President Donald Trump calling the shots for the world's largest economy, which also happens to be Canada's biggest trading partner. But instead of trying to time the market's ups and downs based on an unproven seasonal theory, his advice is stay invested, maintain a diversified portfolio and collect your dividends.
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