Louis Navellier addresses the “sell in May and go away” idea and what he believes will continue to sustain the bull market.
“The S&P 500 rose 1.74% last week. NASDAQ did even better (+2.28%) and the Russell 2000 rose 2.5%, virtually erasing the previous week’s losses. Since domestic smaller-cap stocks have an advantage as long as the dollar remains strong, I expect the Russell 2000 to continue to outperform the S&P 500. As May approaches, I feel there is no advantage in “selling in May and going away,” since you have an opportunity to score market-beating profits by focusing on stocks that surprise Wall Street with rising earnings. In addition, this bull market seems to have some strong “legs” to support it, namely the powerful impact of stock buybacks.”