"Sell in May and Go Away" is a very popular saying for investors that also gets repeated here. But is there truth to it? Or should it be "Buy Dips in May and Stay"?

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What is Sell in May and Go Away?

Sell in May and Go Away refers to a well-known saying in the business and financial world that is based on the theory that the stock market underperforms in the six-month period between May and October, while the period between November and April sees much stronger stock market growth. If investors follow the strategy, they sell at the start of May, which could be why we see a selloff now.

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Bitcoin's monthly return in percentages from the period of 2013 to now

https://preview.redd.it/0vz4ita8g9xa1.png?1392&format=png&auto=webp&s=b74945552312d1d5fa2410fad7f830d276c3f853

• Historically, since 2013, Bitcoin has seen 5 red May months and 5 green May months. So a mixed bag. The average return in May since 2013 is +9.1%.
• June (the month after May) is a rather poor month, with an average decline of -0.9%. July, however, has an average of +9.2%.
• If you zoom out more and include 2011 and 2012, the picture becomes even more positive, with 7 green May months and 5 red May months.
• In sum, no real evidence that one should sell in May. If anything, buying the dips is lucrative, from a historical perspective, because one can reap the rewards in July.

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Even the S&P 500 typically has a good time in May (lately)

https://preview.redd.it/468bw44ih9xa1.png?936&format=png&auto=webp&s=3703a90396cf9301ad42a8207a27af800d6d5f4e

• The S&P 500 (major stocks index, relevant due to strong correlation with Bitcoin) had a green month 9 out of 10 times over the past 10 years.
• On average the S&P 500 was up 0.9% in the last 10 May months.

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So, to conclude:

https://preview.redd.it/4m8gg2ici9xa1.png?300&format=png&auto=webp&s=6387e7ac9ffcca179e345871b44ae22ad047b062