“Sell in May and Go Away”
An old adage in global stock markets refers to the belief that the period from May to October has significantly weaker growth in earnings than October to April. Investors who follow the investment strategy sell stocks in May and hold the proceeds in cash until more favorable conditions come Fall. This was especially true this past May, according to the Wall Street Journal.
Investors are sitting on cash in the typical summer pattern. However, this summer season is different. Many investors are seeking an alternative to an October re-entry into the stock market, due to the U.S. elections and European economic concerns. In efforts to diversify, investors are shifting their focus to real estate.
Naysayers Are Calling 2012 the Bottom of the Housing Market
According to Hawaii noted economist, Paul Brewbaker in a recent speech I attended at the Four Seasons Hualalai, we will look back upon 2012 as the year we should have bought real estate. Further, there is no place like Hawaii in the world to call home
Bloomberg’s interview with Carrington Mortgage EVP and CEO of RealtyTrac, Rick Sharga, talks about the U.S. housing bottom. Opportunity and Location, are key.
Opportunity to buy at the bottom of the market, opportunity to diversify out of the stock market, opportunity to put cash in a true ‘brick and mortar’ safe and tangible haven. Location, location, location, where people want to live – the dream of owning a piece of Hawaiian paradise may never be as accessible as it is today. Savvy investors have already begun to take advantage of the 10 year lows in Hawaii real estate, and the feeling is palpable in the real estate community. When opportunity knocks, you’d better answer the door!
Stay tuned for Part 2 of my “Sell in May” series…”A Buyer’s Strategy, Cash is King”