Tuesday, May 4, 2010

Dorfman: Dump Boeing, Caterpillar and Dow Chemical Now

The month of May is a “great time to weed out” one’s stock portfolio, market guru John Dorfman says.

Dorfman, founder of Thunderstorm Capital, notes that there is an old stock-market adage advising investors to “sell in May and go away.”

“Unlike some adages, this one has considerable empirical evidence in its favor," he says.

"The average six-month price gain for stocks in the Standard & Poor’s 500 Index since 1952 has been 6.36 percent for the November through April span compared with only 1.58 percent for the May through October period,” Dorfman wrote in his column on Bloomberg. (more)

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