It's an old cliché... but it's often true...
Sell in May and go away.
This year, the indicator has been dead-on. But I think it's about to change...
Stocks are down about 5% in May -- declining 11 out of 13 trading days this month.
We saw even bigger declines in 2010 and 2011. So investors would have been wise to follow the old advice.
But another indicator says investors should be buying stocks on this pullback.
It's called the election year indicator. In November, our presidential election will take place. During election years, the stock market has risen by an average of 11% dating back to 1928. And June, July and August are -- by far -- the best-performing months during an election year.
More important, stocks have only had three negative years over the past 21 election cycles.
Based on the election indicator, it may be time to buy stocks and stick around.
Frank Curzio is the editor of Small Stock Specialist and Phase 1 Investor at Stansberry & Associates Investment Research. He also hosts S&A Investor Radio on the Stansberry Radio network. Follow him on Twitter at @StansberryRadio or rankCurzio.
This Near-Perfect Indicator Says Investors Should Buy Stocks Now