So with an average utility stocks, you are better off holding the stock during summer than selling it. Still, most of the gains occur during the winter months.
Hmm… So if you should hold on to your utility stocks, does that mean there are sectors where the sell-in-may effect is even worse? The answer is yes! Otherwise the Sell in May effect would be known as the Hold and Underperform Mildly in May effect. First up, we highlight tech stocks (summer first, winter second).
With technology stocks, holding all such stocks in the summer months would have lost you 50% of your money! Though, there are sectors that are even worse during the summer…
When holding transportation stocks only in the summer, you lost a 64% of your initial value. Eeeks! In fact, when we ran our simulation, it was a bad idea to hold stocks in the following sectors: Technology, Transportation, Basic Materials, Energy, Industrials, or Consumer Cyclicals sectors. All of these sectors distinguished themselves by actually losing money during the summer. It almost seems like there’s a way to measure the seasonality of an industry or group. If so, we can sort our portfolios to avoid the seasonal industries, market cap segments, etc when the season is wrong.
Fuente: https://www.equitieslab.com/yet-another ... maga-post/