Investors should ignore the adage about selling off equities in May as a big preelection summer rally could be coming, according to Bank of America.
"Do not sell in May and go away," Stephen Suttmeier, the firm's technical research strategist, told clients in a Tuesday note.
He pointed to the fact that June through August has been the second strongest three-month stretch for the S & P 500 for all years since 1928.
In those three months alone, the broad market index has gained 65% of the time with an average return of 3.2%, according to Bank of America data.
.SPX YTD mountain S & P 500, YTD And there's a key factor Suttmeier sees changing the narrative for the better this year: the presidential election.
Persons:
Stephen Suttmeier, It's, Jerome Powell, Suttmeier, Williams
Organizations:
Bank of America, Dow Jones, Federal