During the summer months our family tries to ditch the triple digit heat that Arizona brings. The summer doesn’t feel complete unless we hit the beach at least once. I’m not sure what your family tradition is but I’m sure there is something that you try to do every summer.

As the summer was approaching this year, I heard the phrase “Sell in May and Go Away” from various professional Wall Street traders multiple times on various phone calls.

I wasn’t sure where that phrase came from so I looked into it a bit.

There is an interesting tradition that has long been a part of Wall Street culture: the practice of “Sell in May and Go Away.”

For many years, traders and investors would often sell their stocks in May, then take a break from the markets to enjoy the summer months. This strategy was based on the historical observation that the stock market tends to perform better from November through April, and less so from May through October.

The rationale behind this practice is multifaceted. Historically, market volatility tends to increase in the summer, partly due to lower trading volumes as many traders and investors are on vacation. Additionally, there have been periods when geopolitical events and macroeconomic factors caused increased uncertainty during the summer months.

This strategy may have worked in the past, but it’s essential to remember that the markets are constantly evolving. With advanced technology and the globalization of markets, the traditional patterns are not as pronounced as they once were. Investors now have access to real-time data and can make informed decisions year-round.

It seems like markets are constantly in flux and you really need to be on your “A” game or have someone in your corner watching the eggs in your basket if you truly want to enjoy your time away with your family.

Over the years I have had a few notable conversations with folks about their investing. The first was a couple traveling through my home town in a 7-figure RV. It had everything you could imagine in there, big screen TV, satellite,  full size fridge and freezer, all the standard amenities and very plush. They were such a nice couple and I got to know them a bit over Arizona’s winter months because they were escaping the snow.

Then it happened, one week the market took a substantial hit. This gentleman was checking his portfolio and lost so much money that he felt that he had to pack up and head home four months early because he was concerned about his portfolio and his budget for the next year.

Another couple left to go on a three week European vacation with their adult children. They had purchased their lakeside lot and had plans drawn up and submitted to the county for permit approval. When they got back from their European vacation their accounts dropped by so much that they had to call their builder and give them the bad news that they were not financially able to move forward with their dream home and would have to postpone indefinitely.

While it might be a nice age old adage to “Sell in May” and go away. We can consider that phrase a relic of Wall Street history.

Now more than ever it is imperative to have an optimized balance between variable at risk investments and actuarial type investments so that you can produce the peace of mind, freedom to travel, and spend time with loved ones or anything else you want to do with your time.

Remember that time and missed experiences are the true assets you can never get back.

I’m curious to hear about some of your favorite family summer traditions. Reply and let me know what would leave a summer incomplete if you missed it.

Stay cool!