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May Market Recap

I’m glad you didn’t sell in May and go away.  Get away, sure.  But don’t fall for that old Wall Street canard that nothing good happens in the stock market during summer months, so you may as well just sell your stuff and check out.

We don’t do that.  We’re investors, not traders or speculators.  We know that hitting a few dips on a long journey is all part of the process.  And that’s why the patient and persistent are handsomely rewarded while the fearful herd follow each other to the checkout aisle, repeatedly selling low in a panic and then buying high when CNBC, CNN, and USA Today tell them it’s OK, baby, you’re safe now.

Here’s what they missed in May.  A bit of a mixed market as April’s best performing index, the NASDAQ Composite, was May’s slacker.  Off 2.5%, yet still up nearly 7% this year.

The Dow, officially the Dow Jones Industrial Average, celebrated its 125th birthday last month while climbing a notch and a half.  That puts it close to 13% better on the year.

The broad market as measured by the Standard & Poor’s 500 barely got out of the gate in May.  Yet stumbled across the line looking about 12% better year to date.

And for you small company aficionados, the Russell gives up 1% for the month, yet still leads the pack on the 2021 scorecard at 15%.

Looks like I might have made a pretty good case for diversification there.  Not chasing last month’s or last year’s winners because there’s no telling what the future holds. 

Continue to ignore mainstream media’s short-term financial advice, because you’re a long-term investor.  Better still, turn them off and enjoy your summer.