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Does This Data Show 2015 Is Finally The Year To 'Sell In May?'

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Does This Data Show 2015 Is Finally The Year To 'Sell In May?'

A new report by McClellan Financial Publications took a unique look at investor sentiment regarding the current bull market. Many investors are familiar with the old Wall Street adage "Sell in May and go away," but McClellan believes that Google Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)'s Google Trends data indicates that the idea of selling stocks has been of particular interest to investors this May.

The Data

McClellan used a Google Trends search to determine how popular the search phrase “Sell in May” has been during the past decade. Not surprisingly, searches for the phrase have peaked each year during the month of May. However, the number of searches for the phrase in May 2015, is well more than double the number of searches in any other May in the past 10 years.

Related Link: Sell-Side Sentiment On Etsy Not Looking Favorable

Why So Popular?

McClellan theorized that the popularity of the search phrase this year is a reflection of investors’ general fears about the remaining longevity of the 6-year-old bull market; "My conclusion is that investors are manifesting an expectation of an ultimate top for this bull market and wanting to know if it is time to get out because it is the month of May."

Counter-Indicator?

Ironically, negative investor sentiment is typically a counter-indicator, and the Google Trends data suggests that the bull market is likely to continue for the time being. In fact, McClellan is calling for a "big long-term pop" in the stock market later this year.

Related Link: Alibaba Sentiment Is Bullish On Social: What Are People Saying?

Stocks To Buy

Rather than selling this May, McClellan mentioned several stocks that investors should be buying. McClellan rates Tesla Motors Inc (NASDAQ: TSLA), Netflix, Inc. (NASDAQ: NFLX), Gilead Sciences, Inc. (NASDAQ: GILD), Freeport-McMoran Inc (NYSE: FCX) and Mastercard Inc (NYSE: MA) as Buys.

Image Credit: Public Domain

Latest Ratings for TSLA

DateFirmActionFromTo
Feb 2020Cowen & Co.MaintainsUnderperform
Feb 2020Morgan StanleyMaintainsUnderweight
Feb 2020BernsteinMaintainsMarket Perform

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Posted-In: Google Trends McClellan Financial PublicationsAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

 

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