AAII: Reasons for Not Selling Stocks This May

Here is another contribution from this week's AAII.  All the cynics are insisting that the market is heading for a major correction.  This article argues that those selling now in anticipation of a downturn will be sorry.  Hope everyone had a great weekend.  

AAII: Investor Update 5-2-24 Reasons for Not Selling Stocks This May

The S&P 500 index is extending its streak of avoiding large daily downward moves. This streak of lower downside volatility adds to the reasons for not selling in May even with higher-for-longer interest rates. The last time the S&P 500 fell by 2% on a daily basis was February 21, 2023. The large-cap index closed down by 2% that day (technically, 2.004%). This appears to be the longest such streak since the 17-month streak between September 9, 2016, and February 2, 2018. This year is also on track to be below average in terms of days with a move of 1% or more. The S&P 500 has realized a daily gain or loss of 1% or more just 17 times so far (10 days up and seven days down). This compares to a post-global financial crisis average of 60 such days per year.

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