The old market adage says, “Sell in May and go away,” but this year is proving to be anything but typical. Instead of retreating, the market surged in May, with the S&P 500 posting a gain of over 6% for the month. Perhaps the saying should be updated to “Buy in May and don’t go away.”
This powerful rally did more than just boost portfolio values. It significantly improved market sentiment. Just a few weeks ago, we were navigating a heightened volatility environment, with fear gauges plummeting toward pandemic levels, and the volatility index (CBOE: VIX) surging to unprecedented heights. But in a matter of weeks, the market staged an impressive V-shaped recovery, with major indices turning green on the year and reclaiming key technical levels across the board.
