On Wall Street there are a lot of old adages. The next one that is on our door step is “Sell in May and go away”. The strategy consists of selling all of your positions on April 30 and reinvesting them on November 1. The thinking goes you would be sitting out the worst performing periods for the market and invested during the best times.
Your portfolio would be in the market during the early part of the year capturing the January effect and at the end of the year's fourth quarter rally. In return you would miss the summer doldrums and any October weakness. The question we will explore is how well does the adage work and how much of a difference does it make....
In the introduction to the Novel “A Tale of Two Cities”, it was stated that “These were the best of times and the worst of times.”
A similar statement by investors could be made for the crash of 2008 through 2009 recession. A bull market recovery, as seen in S&P 500 (SPX) price (blue vertical bars) and earnings (green dotted) curves below, occurred starting from the market bottom at the beginning of 2009 to the present 2011. Doing well in the market meant continuing to hold quality stocks while adding to purchases during the two year recovery.
Did the American taxpayer just hire 50,000 new McDonald’s Employees?
APRIL 22, 2011 - by Luke Laidley
On April 19th, 2011, McDonald’s will hire an unprecedented 50,000 new employees nationwide. The $24 billion, fast food franchiser is painting the event as good news for workers and the economy. How did Ronald McDonald really pull this off?
Certainly, Americans are supportive and proud to recognize one of our finest corporations growing again by hiring 50,000 American workers which will generate an estimated $1.4 billion in annual spending, according to MarketWatch. Yet, this hiring spree poses an interesting question: What drove this decision for the McJobs hiring? Was it McDonald’s increased profits or was there additional financial support given from Ronald McDonald’s best friends, namely the American consumer?