1-800-822-8080 Contact Us
Select Page

One of the biggest financial market myths is that of “Sell in May, and Go Away.”  Frankly, it doesn’t even suggest prices will go down during the summer; but instead, that they will be lethargic and volume-less whilst CRIMINAL Wall Street bankers vacation in the Hamptons.

Generally speaking, volumes do in fact decline during the summer.  However, regarding the potential for material price movements – and at times, early scrambles to the office via the Long Island Railroad or Hampton Jitney – HISTORY says otherwise.  In other words, some of the most enthralling market rises – and cataclysmic plunges – have occurred during the summer months; which is why in June 2011, I wrote the following RANT…

Ranting Andy: “Summer Doldrums,” The Biggest Load of C–p Ever! – June 24, 2011

…and lo and behold; look what happened to the “DOW JONES PROPAGANDA AVERAGE” that summer…

INDU Dow Jones 9-6-11

…let alone, gold

Gold 9-6-11

…and silver

Silver 9-6-11

In fact, in recent years, nearly every summer has been eventful; for both the Dow and PMs.  Here’s the Dow in the fateful summer of 2008…

INDU Dow 9-5-08

…the “recovery summer” of 2009…

$INDU Dow 9-4-09

…and the PPT-inspired, Obama re-election campaign surge of 2012…

INDU Dow 9-6-12

…while here’s what gold did in 2008 (a pittance of a decline, compared to the Dow)…

Gold 9-5-08

…2009…

Gold 9-4-09

…2010…

Gold 9-3-10

Gold 9-6-12

…and 2012…

Gold 9-6-12

In other words, assuming nothing will happen could – literally – be the difference between “financial life and death.”  Now – more than EVER in our lifetimes – the risks of turning a blind eye to our portfolios are SKY-HIGH.  Do not be surprised if the “Summer of 2013” is historic; and if it is, I ASSURE you it won’t be the “good kind” of historic.