Traditional wisdom of stock market is Sell in May, and go away. It actually is from British saying. The Chinese saying is May is Poor, June is extreme, July is grand recovery! It actually was talking about the movie industry in the 1950s concerning school exam and summer holidays.
So in 2025 should be Buy in May, Don’t Go Away!
Amazon put an additional charges of tariff on their products, such as during the petroleum crisis, a lot of airlines made additional energy charge beyond the fare, showing that they are not willing to raise the price, it is because of their cost is higher now. But all the way Trump said tariff would not blow up the price, it won’t trigger inflation, so he phoned to Jeff Bezos, the additional charge was eliminated at once, and less it would bring about domino effect.
Facing the bad news of negative GDP, 3 major indexes opened at low but formed rising hammers and digested the bad news at once for the market is expected tariff can compromise soon. The rebound will meet with resistance at the 250-SMA, now the 3 major indexes are all under this line and it needs some time to go up. Anyway, most of the time, US stocks are running over this line, so when the price is under it, it’s the best time to buy. For the Magnificent Seven, six of them are under this line, they are AAPL, MSFT, NDVA, AMZN, GOOG, and META. However TSLA is over it, but it is facing a lot of blockages for the Full Self Driving in China. AVGO is also above the 250-SMA and is said to be the Magnificent Eight in the future. In 2022, when I complied the Teaching Videos, I already told investors to buy in AVGO with BA (Boeing) in Video 2 at the lowest points. Now BA is in a strong position even better than the Magnificent Seven. The recommendations are still valid now. On the whole, take chance to buy in when adjustment comes. Don’t worry, the low is one low higher than previous.