Storm Flags Flying – Revisited

Presented by the Hardee Investment Group and RBC Wealth Management –

Here on the Gulf Coast we begin preparing for hurricane season every May. It’s not something we look forward to. We’d rather be planning our summer vacation to the beach or a Caribbean island. But it’s what you do to prepare.

Investing is much of the same. An old adage on Wall Street is “Sell in May and Go Away.” This saying came about decades ago as traders in New York City would sell their positions in anticipation of spending the summer in the cooler environs of The Hamptons. This was well before electronic trading and cell phones.

However, there is a great deal of truth that still guides human nature today. There are documented seasonal tendencies such as the best six months and the worst six months of the year. According to the Stock Trader’s Almanac, May through October has historically been the worst six-month period of each year. If you had invested $10,000 in the Dow Jones Industrial Average on May 1st and sold October 31st of every year since 1950, you would have lost money over the past 64 years. The above example is not an investment recommendation. However, a wise investor, just like a wise vacationer, plans for a hurricane this time of year, even as they go about their everyday business.

2013 produced double-digit returns for the year. The only hiccup was in May and June when the S&P 500 declined approximately 7% on fears of rising interest rates. Even in good markets there can be turbulent times.

Don’t despair, just prepare. The average American cannot afford to retire on just their savings. They must invest to accumulate wealth. Our goal is to help you prepare for your future even as the “storm flags are flying.”

If you’d like to learn more about the “good” period of investing, how we help manage “hurricane season” or strategies designed to accumulate and maintain wealth, contact us at

 The views presented herein are solely those of H.H. “Will” Hardee, and do not necessarily represent the views of RBC Wealth Management. Current status of issues discussed in this letter is subject to change based upon market conditions and industry fundamentals. Clients should work with their Financial Advisor to develop investment strategies tailored to their own financial circumstances. Past performance is no guarantee of future results. The name Hardee Investment Group refers to a group of Financial Advisor working in the Houston, Texas office of RBC Wealth Management. The Hardee Investment Group is not a separate legal or corporate entity. All services offered and all memberships referenced in the presentation refer to the services offered or registrations held through RBC Wealth Management. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC. RBC Wealth Management, a division of RBC Capital Markets LLC, Member NYSE/FINRA/SIPC.