Mid-July Update

Debunking Sell in May and Go Away:  Investing

Working in and around Wall Street for over 30 years, I have been exposed to many systems and strategies about investing.  Although usually not explicitly stated, these strategies are “predictions” about what will occur in the markets in the short-medium term.  Often there is historical data cited to support the particular system or thesis.  I have always felt that certain systems – like economics or geo politics – are too complex to predict what will occur in the short-medium term.  One such system is “sell in May and go away”.

According to Investopedia;

“Sell in May and go away” is a well-known financial-world adage, based on the historical underperformance of some stocks in the “summery” six-month period commencing in May and ending in October, compared to the “wintery” six-month period from November to April. If a trader or investor follows the sell-in-May-and-go-away strategy, they would divest their equity holdings in May (or at least, the late spring) and invest again in November (or the mid-autumn).

So, what would have happened if you “sold in May” this year?  Quite simply you would have missed out on the best June performance* since 1938.

Although “historically” June has not been a great month for equities, this year it was different. Much different.

The lesson here might be to mostly ignore the noise of Wall Street/media “systems” and “theses” – especially (sell in May).  Instead, create a long-term comprehensive plan and invest according to that plan.

 
Mid-July Update

The Country’s Busiest Airports:  Travel & Leisure

The summer months tend to see the heaviest travel of airline passengers across the country, with summer traditionally the most profitable season for airlines when flights are full due to increased demand. It is expected that a record 257 million Americans will travel by plane this summer.

As both business and leisure travel have been increasing domestically and internationally, U.S. airports have seen an increase in passenger traffic. Some U.S. airports serve as international hubs with flights originating in foreign countries worldwide and landing there directly from a foreign destination.

With some of the most popular travel destinations in the world, American airports cater to tourists traveling both domestically and internationally. Not only is the Atlanta International Airport the busiest airport in the country, it is also the busiest passenger airport in the world, with Beijing a close second. Atlanta is also geographically attractive, located only a two-hour flight away from 80 percent of the U.S. population.

Various factors affect the accessibility of airports and how much traffic they generate. Denver International Airport is located in an extremely rural area of Denver, allowing vast amounts of rail and road traffic access to the airport. Chicago’s O’Hare and New York’s JKF are both situated directly within the city, yet accessible by millions of visitors. Geographic characteristics and access to airports allow some airports to handle more air traffic.

An increase in passenger volume has inundated airports nationwide with expansion projects from New York’s Kennedy to LAX in Los Angeles. Labor disputes involving airline maintenance and airport staff have escalated as the labor market has tightened. A shortage of air traffic controllers and aircraft maintenance staff have been the primary obstacles for airlines and airports this year.

Sources: Dept. of Transportation, FAA

*Market Returns: All data is indicative of total return which includes capital gain/loss and reinvested dividends for noted period. Index data sources; MSCI, DJ-UBSCI, WTI, IDC, S&P. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.