Few Fundas in financial markets

These are fundas in general from my readings and experiences.Nevertheless, there is no fool-proof evidence that they are right all the time. So, you be leery of the rules -

"Sell in May and walk away"

This is an old Wall Street saying about the summer and early fall. As "sell in May and walk away" suggests, stock gains have been historically stronger in the November through April period than in the May through October period. The saying suggests that investors may want to move out of stocks into cash or fixed income in the tougher months and then back into stocks in November, at the start of the seasonally bullish period. But the main best performing sectors in the summer period are -

• Consumer and health care stocks (jus because investors focus on defensive plays at tougher times)
• Energy ( because lotsa driving - gas prices hike - bad for consumers - good for ppl who invest in natural gas stocks. I suggest investing in these stocks - get the short term gains and spend them on your gas expenses :-) )
• Financials ( Oh yeah, this is an evergreen sector - they make hell lot of money just for holding and moving other people's money)

"Buy the Rumor, Sell the News"
Oftentimes a rumor will circulate around a stock or a company. The rumor might be that the company is going to be acquired by a competitor, or that an exciting new cure for the common hangover is about to be released. When a company is rumored to be acquired, those who are acting on the rumor can mentally fill in more or less any acquisition price that they like -- until an announcement turns the rumor to fact. Should an actual acquisition ever be announced, the facts rarely end up being as attractive as the upper limits of the rumor. Because all the best possibilities have already been "priced into" the stock before the real news breaks, the actual announcement tends to reveal the limits to the good news, rather than just the positives that are at the center of any rumor.

I drafted this post 3 months ago and never found time to finish it....am publishing it right now so it motivates me to finish it(well, atleast lets me say what all I have to)

Happy Stampeding weekend calgarians!