Sat, 14 May 2016
In this episode of the Informed Choice Podcast, Martin talks about selling an investment portfolio in May and staying away from the equity markets until after a horse race has finished.
There is also a roundup of the latest personal finance news and an update from the world of Informed Choice.
Sell in May
You might have heard investors and commentators talk about the old adage ‘Sell in May and go away, come back on St Leger Day’.
This is based on a theory that November to April is has significantly stronger investment growth, on average, than May to October.
So if you follow the sell in May strategy, you would sell your equity holding at the start of May and keep that money in cash over the summer months, before reinvesting it after St Leger Day.
St Leger Day refers to the St Leger Stakes, a flat horse race in Doncaster, which takes place each year in September.
So does this investment theory stack up? Should you be rushing out to sell your investments in May and keeping them all in cash until after the last of the British Classic Flat Races?
In this episode of the Informed Choice Podcast, Martin examines the research and shares his thoughts on whether this investing strategy make sense.
Personal finance news update
-Payday lenders will no longer be able to advertise their services on Google, as the search engine giant attempts to limit what it calls a ‘harmful’ industry.
-The number of people looking for a new home to buy has fallen to its lowest level since 2008, according to a survey by the Royal Institution of Chartered Surveyors.
-UK industry has slipped back into recession for the third time in eight years, according to the Office for National Statistics.
-Tens of thousands of property purchases fall through between offer and exchange of contracts each year, as the average time it takes for property lawyers to progress to this stage takes just shy of three months.
-Only 1% of people know all of their loved ones’ funeral wishes.
-Adults in the UK spend more time organising their music collections, photos, and wardrobes, than they do reviewing their pensions and long term savings plans.
Martin and Informed Choice
Martin Bamford is a Chartered Financial Planner, Chartered Wealth Manager and SOLLA Accredited Later Life Adviser. As Managing Director of Informed Choice, the award-winning firm of Chartered Financial Planners in Surrey, he is responsible for nearly £200m of client assets.
Martin is the author of several bestselling personal finance books and produced his first feature-length documentary in 2014, about the post-war Baby Boomer generation in retirement.
“Bamford excels at making even the dullest topics interesting” – Pensions Management