Generally speaking, May isn’t a great month for stocks, but that shouldn’t preclude you from looking for high-quality stocks to buy that typically buck the bearish trend.
There’s a reason the phrase “Sell in May and go away” has become a key consideration for traders. On average, the S&P 500 loses 0.2% for the month that just recently got underway, making it one of only two net-losing months of the year — September is the other.
Even so, that modest lull is misleading.
Stocks tend to start may on a bullish foot and end it with some buying as well. It’s the two weeks right in the middle of May that cause so many problems, with the S&P 500 sliding an average 1.1% from high to low around then.
That being said, May isn’t a miserable month for all stocks. A handful of names muster some surprisingly big gains as springtime winds down and begins to yield to summer.
Here’s a look at the top stocks to buy for your best bet at gains this month: