With stock markets at all time high and month of May approaching, it is time to follow time-tested advise of "Sell in May and walk away". While there may be some more gains in weeks away, historically we are entering into six-moth period where avg stock market returns have been slightly negative (compared to this we are just ending Oct-Apr period where returns have been good historically). If we just go with pure financial logic, this does not make sense. But after all markets are more influenced by psychology (than formulas). Yesterday only in Haas Reunion Conference @Berkeley, I attended a sessions on "Behavioral Finance" by Pro Greg La Blanc. Basic theme was that markets are influenced more by what people think of what others would do than by fundamentals (at least in short-term). This is why we see Apple trading at less than 10 times earnings while Amazon trading at close to 100 times earnings because people believe that Apple story is over while there is still
Commentary about markets and investment ideas and some random thoughts!