The Fed Embraces Its Inner Zimbabwean

Zimbabwean notes

May is on its way, and the old investment saw, “Sell in May and go away,” will be tested once again. Jared Blikre, writing for Yahoo Finance, provides the history behind what may or may not be good advice. “The full axiom was originally, ‘Sell in May and go away, and come on back on St. Leger’s Day,’” he explains. “It has its roots in the City of London. Financial professionals would go on holiday in May for approximately four months to escape the summer heat and return for the St. Leger derby in mid-September.” 

While we’re told there’s a pent-up demand for travel, people’s phones and trading apps will still be close by, begging for attention in the summer sun. Robinhood and Coinbase alerts won’t hide from the weary traveler parked under an umbrella, toes in the sand, piña colada in hand. 

Dogecoin will not get the hell out of Dodge this summer. The cryptocoin, created as a joke, is surprisingly not obscure. My newest doctor and I, while he drained the goo from a ganglion cyst on my wrist, discussed the trading action of dogecoin after I mentioned I had done some work on booms and busts. 

As I write, Dogecoin is up after Elon Musk, who will add Saturday Night Live guest host to his resume on May 8, called himself “the dogefather.” Musk’s Tesla shares continue to defy logic and gravity, but could the coming guest-hosting gig signal a market top, at worst, or a reason to sell in May, at least?

DOGE, created by software engineers Billy Markus and Jackson Palmer, was also discussed at dinner the other night, when a couple, who admitted they have no idea what they’re doing, said with a shrug, “Yeah, we’ve each doubled our money in a few months trading stocks.” Nothing as exotic as DOGE, but reopening plays like cruise line and airline shares.

Kevin Duffy, proprietor and author of the Coffee Can Portfolio newsletter, provides thirteen rules for investing, not speculating. Number 12 is, “The retail investor is always late to the party.”

1 2
View single page >> |

Mises Institute is a tax-exempt 501(c)(3) nonprofit organization. Contributions are tax-deductible to the full extent the law allows. Tax ID# 52-1263436

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.