The Trader 

May markdowns

The Trader

Trotted out regularly at this time of year, the phrase ‘Sell in May and go away, and come back on St Leger Day’ makes one think that people actually do this. Wrong! As investors in the Woodford Equity Income fund found out this week when trading was suspended. Datastream reports that, using data from MSCI, global stocks shed $2 trillion in value in May 2019; this does not necessarily mean investors have been selling, but shows that share prices have been marked down. This headline, along with others like ‘the lowest level since..., biggest price drop since...’, are unhelpful and have no predictive value.

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