Matt Golab of Aaron Matthews Financial Resources Talks About Why Sell in May Might be too Late
Thursday, April 17th 2014
It seems like the last two years this has been the theme, "Sell in May might be too late". Last year many analysts and traders recommended an early re balance for two reasons; fund managers would be going on vacation during the summer and putting their portfolios on auto pilot and the second reason was because bond values would likely be under pressure.
According to Mark Hulbert of Marketwatch, "Since the Dow Jones Industrial Average was created in 1896, the market has produced a 5.2% annualized return during the winter months and 1.7% in the summer".
This statistic talks about the market producing its strongest gains from Halloween until May and that selling or rebalancing in May is a way to preserve a portfolios balance. With portfolio managers putting their portfolios on a virtual auto pilot and many investors on vacation and not trading very often trading volume drops which can bring additional volatility in the summer months.
The summer of 2013 produced strong returns for the Dow but the idea of selling in May or turning a portfolio conservative can be found as far back as 1935 in the Financial Times.
Selling in May might not be a good idea if you're investing in an account that is taxable such as an Individual or Trust account because you would be liable for capital gains tax. A better strategy might be to rebalance to minimize risk to the whole portfolio. This tax liability is not present in a qualified account such as an IRA or 401k.
As we enter into the summer months off the high of 2013 this is the most important time to sit down with an Investment Advisor who will give your portfolio a Third Party Stress Test. This will show you what you could expect in your portfolio if the next 2008 happened today. It will also show you your true allocation, the same type of allocation a Pension or Mutual Fund Manager would implement. A Stress Test would also uncover all the costs and fees, both disclosed an undisclosed.
Here's to investing in 2014!
Matt Golab was recruited to write a chapter in Tom Hopkins recent book, Victory which became a National Best Seller. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.
Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years. The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.
He is often featured in Retirement Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers around the country passing on the principals for a successful retirement. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans. Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle, Newsweek, TheSmartRetiree, Burlington County Times and appeared nationwide on ABC, CBS, Fox, and NBC as well as USA Today.
Matt has a weekly radio show where he discusses all aspects of retirement planning, total wealth management, and estate strategies. Through his relationship with Retirement Radio Network experts such as David Walker former Comptroller General of the United States, Harry Dent of the H.S. Dent Foundation, John Bogle of the Vanguard Funds and many more have been heard on his show Income Forever.
Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market". Contact information for Matt is available at his website,
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