Sell in May and Go Away

I have been seeing this headline all over the place, this headline is flashing much more compared to the past. Perhaps my mind play tricks on me. But look at this, what does it tell us when you need to assemble a panel of expert to debate about it?



If people really want to sell, they will sell it quietly. Since statistically everyone knows about this secret, why don't they do it? Why? It's because everybody doesn't want to make a first move fear of losing out. Plus there have been rumors that more than 10 US banks will fail the stress test but profit taking has been shallow. Why?

(Business Times)SINGAPORE - Citigroup's Asian wealth management chief said business has improved in 2009 and clients are reducing their cash levels by investing in stocks and bonds, a turnaround from their super defensive stance late last year.


'The paranoia that gripped the market last year has eased off,' Aamir Rahim, CEO Asia-Pacific of Citi Global Wealth Management, told Reuters. 'People are more comfortable taking risk, but are much more disciplined about it.'

'We've actually seen an improvement in the first few months of this year month-on-month in the Asian business and we continue to see that,' he said in interview on Tuesday.

He said clients have begun to deploy some money into markets.

'They are probably still 50 per cent long cash. Late last year they were in the range of 70-80 per cent in cash,' he said.

It's because people are loaded with cash -- 50% long cash is a lot of money.