Episode 6
Sell in May & Go Away?Market statistics have shown that over the past 24 years, stocks under the S&P 500 Index had consistently underperformed from June through September compared to the rest of the year. This led to the perception that a wise strategy is to “Sell in May & Go Away”. This May, the European Debt Crisis has returned to the forefront of global financial markets and the Straits Times Index has lost some 3% half way through the month. Should investors indeed sell in May and go away? And when would be the right time to invest again? Financial Planning 101: To Buy a House in 2 Years? In a case study, a working lady takes home $2,560 after CPF contribution deductions. With a car installment of $850 per month, the largest item of all her monthly expenses, she does not have much savings after deducting all other expenditures. If she plans to buy a house in 2 years time, how should she adjust her expenditures to realize her home buying plan?