"Sell in May and Go Away"
The idea of the adage is that the markets tend to be weak during the six month period from May through October is something that hits close to home for investors, given that we have just turned the calendar to the month of May. As we look back over the past couple of years, we find that May has ushered in some choppy, if not sloppy market behavior. For example, in 2012 the market (as measured by the S&P 500 (SPX)) peaked in April and the slid roughly -10.6% by early June, pushed higher in the later Summer months, only to experience an -8% starting in October. Point being, the "weak period" in 2012 was filled with periods of "fits and starts." And we all remember 2011, as it truly tested investor's mettle, as the SPX dove -21% from its peak in May to its October bottom. Tack this on to 2010 in which the markets experienced the "flash crash" in May, and it's not surprising that recent memories of the markets from May through October have left a bad taste in investors mouths. This is not to say that all May through October time periods result in major corrections or seismic market events, but it is a period of time that the market has not historically made great strides.
So as we hit May and the beginning of the historically "seasonally "weak" period for Equities, now is the time to think about positioning your portfolios accordingly. "Tilting" seasonally, using a combination of low-volatility and Technical Leaders ETFs, is a powerful way to do that.