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Sell In May…

05 May 2015 by lberuti

After a couple of sessions that were done with a good portion of market participants enjoying some time off, trading for the month of May started in earnest today. It all began slowly, but from noon onwards, credit indices started to drift wider. And they did so at a decent pace. The reason is to be found in the interest rates reversal which began last week, and of course in the Greek situation which produced more noise today. It came in the form of a rumour that the IMF would require some debt reduction before granting further money. With deadlines drawing ever closer for Greece, investors now strongly feel like a day without any progress is a day lost and they are becoming a bit agitated. That put the UK elections on the side-lines for now, but they could prompt a few wobble of their own later in the week. Because of all that, investors would be foolish to go away, but they certainly had good reasons to start selling in May.