The JSE bottomed & heading up

Sell in May and go away is an adage for many investors. It may sound glib, but it is based on years of solid experience, so investors should not take it lightly. Stocks do not move straight up and discount potential earnings fully in one big move, they do so over time.
At the close of September, the Junior Market closed 180 points or 4.9 percent higher and the All Jamaica index (AJI) is 6,990 points 2 percent higher than the August close and up over July. This is noteworthy as it conforms to the tradition in the local market with July being the start of the stock market year after the sell-off from May to June. This year the Junior Market bottomed in late August, with the AJI bottoming out in the first week in September although it seems to have hit a bottom in late August.
This year, investors are seeing lower inflation, a sharp cut in BOJ CD rates and more recently a cut in the BOJ overnight rate.
The rationale for the Sell in May and go away theory is that by the middle of May, the full year’s results and those for the majority of the first quarter are almost entirely released, resulting in investors positioning to have more or to sell. After mid-May, there is not much more price moving information is expected until late July when new developments start to come out or are expected. The lesson, it is best to buy stocks between May and late July but sell before the middle of May to get some of the best prices before the summer sets in.