“In 2010 the U.S. stock market peaked at the end of April and then sold off until the Fed announced QE2 several months later. In 2011 the stock market peaked at the end of April and sold off until the Fed announced Operation Twist several months later.
This will be the third year in a row that stocks have started selling off in May. I predict the drop will continue until the Fed announces the next version of stock market stimulus; probably in August at the Fed’s Yellowstone confab.
Why stock prices did not peak at the end of this April was that in April 2010 and April 2011 there were decent inflows into U.S. equity mutual funds and U.S. ETFs. This April there were outflows not inflows from both U.S. equity mutual and exchange-traded funds…”
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Sell in May, plus or minus two months…