SELL IN MAY AND WALK AWAY

The stock market is about to enter what has historically been the weakest half of the year. Today’s chart illustrates that investing in the S&P 500 during the six months of November through and including April accounted for the vast majority of S&P 500 gains since 1950 (see blue line). While the May through October period has seen mild gains during major bull markets (i.e. 1950-56 & 1982-97), the overall subpar performance during the months of May through October is noteworthy. Hence the saying, ‘sell in May and walk away.’

Chart of the Day

Chart of the Day

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AWD

Anyone with a brain has sold already. The smart money and insiders have sold everything not nailed down. The mother of all stock crashes is setting up. Record margin debt, the backstop–the Fed, is insolvent, and the government, that bailed out the Wall Street gamblers and banksters last time is also insolvent. Ergo, no backstop this time, ergo there bottom may well be zero.

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Thinker

Not sure where else to put this… Some months ago, I shared an article that pointed out that Obama’s recent budget cut a large degree of federal funding for infrastructure projects in the States, in favor of moving those monies into entitlement programs. Remember, a significant portion of the “stimulus” included infrastructure spending; that’s now going away, just like extra SNAP benefits already have expired.

States are already starting to grapple with the problem of how to repair roads, bridges, etc. without any hope of federal funding to offset costs (hint: many projects aren’t going to happen).

Now, we have this:

White House opens door to tolls on interstate highways, removing long-standing prohibition
http://www.washingtonpost.com/local/trafficandcommuting/white-house-opens-door-to-tolls-on-interstate-highways-removing-long-standing-prohibition/2014/04/29/5d2b9f30-cfac-11e3-b812-0c92213941f4_story.html

With pressure mounting to avert a transportation funding crisis this summer, the Obama administration Tuesday opened the door for states to collect tolls on interstate highways to raise revenue for roadway repairs.

The proposal, contained in a four-year, $302 billion White House transportation bill, would reverse a long-standing federal prohibition on most interstate tolling.

Though some older segments of the network — notably the Pennsylvania and New Jersey turnpikes and Interstate 95 in Maryland and Interstate 495 in Virginia — are toll roads, most of the 46,876-mile system has been toll-free.

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More at the link.

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