There's an old Wall Street adage that urges investors to "sell in May and go away" — but CFRA Research says there's an even smarter way to play the market this spring.
According to the Stock Trader's Almanac , the worst six months of the year for the S & P 500 starts in May and runs through October.
The strategist says traders can look toward defensive names during the May slump, instead of entirely exiting the market.
Indeed, since 1990, while the entire S & P 500 gained 6.7% annually, average price gains from equal exposure to these four sectors returned 9.0%.
The stock almanac's editor, Jeff Hirsch, said that reducing long exposure and adopting a defensive stance will pay off for investors during the low period.