An
investments specialist has attempted to quash the long-standing
investments mantra that it is best to
sell shares in May and buy them back again in September.
According to tradition, the value of
shares on the
FTSE 100 tends to stay static or drop slightly over the summer
months as speculators take time off from
financing concerns to enjoy the summer at
Royal Ascot
, Wimbledon, the Henley Royal Regatta and
cricket test matches.
However, investments organisation FC Investments has put this
theory to the test by examining returns from the share index over
the past two decades.
And it has been discovered that investments typically increased in
value during the summer in 14 of the last 20 years on record.
Put bluntly, 70 per cent of the time it would have been wrong
to have sold in May, commented Jason Hollands of FC
Investments.
The incidence of summer down months is, in fact, not
dissimilar to the picture for the whole calendar years.
Last year, investments specialist Fidelity International unveiled a
new investments profiling tool on its official website, which
claimed to be able to match speculators to appropriate investments
opportunities.
