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Market Comment - May 2012

May 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • Market C
A good news story on smaller companies. A couple of weeks ago we researched the “Sell in May†strategy, you know the one where you sell on 1st May and buy back on “St Leger's Day†(2nd Saturday in September). In a sideways moving market we will always explore ways to improve returns (not just clutching at straws!).We applied the strategy to every fund sector (equities and bonds) and the FTSE-100 over the two years from 1st May 2010.Looking first at the footsie, if you applied the “Sell in May†strategy from 2010 onwards you were up 20% by now. In contrast if you applied a “buy and hold†strategy the footsie was ahead by just 2%. That might not surprise you too much.Nor will it surprise you that the optimu ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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