A new Wall Street saying is born: "Buy in May and enjoy the profits"

On Wall Street, there is a famous saying "Sell in May and go away". This investment strategy believes that stocks tend to underperform in the six months from May to October. Therefore, investors should convert their holdings to cash at the beginning of May, and then buy back on dips in the autumn market. However, the resurgence of the U.S. stock market in May has replaced this old adage with a new one: "Buy in May, enjoy the returns." The origin of "Sell in May and go away" has been debated for a long time, with some attributing it to holiday cycles or bonus payouts, while others point out that the 1929 market crash and the 1987 "Black Monday" both occurred during this period. But this year is different, as U.S. stocks continue to recover from the sell-off triggered by tariffs, with significant gains since the end of April to the first half of May. The S&P 500 index even surged 6% in the past two weeks. The trade tensions easing unexpectedly, coupled with lower-than-expected inflation data, have injected confidence into the market. In the current news-driven volatile market, the S&P 500 index closed on Tuesday, marking the first return to positive territory since February. So how have previous years fared? Many academic papers and market studies have explored the "Sell in May" strategy, analyzing it by stock category and time period. While seasonal patterns do exist, with potentially higher risks in the summer, in the long run, stock prices generally trend upward despite increased volatility. Historically, maintaining a fully invested position in any year may be more prudent than trying to time the market. Additionally, there are numerous indicators to assist investors in making better investment decisions, such as corporate earnings, valuation levels, macroeconomic conditions, and interest rate trends. Financial commentator and investment group leader David Lerner wrote earlier this month, "Don't sell in May, instead hold investments and hedge; despite tariff issues and economic recession concerns, the market's resilience hints at potential returns." He added, "Panic selling has created buying opportunities for tech and communication sector giants; disciplined buying at support levels has already yielded over 20% returns."