Commodities: Buy in January and sell in May?

ETF Securities has analysed the effectiveness of a seasonal approach to investing in asset classes and found evidence of potential success from such a tactic within the commodities space.

The firm's report, Commodities; Buy in January and sell in May, has suggested while the old adage "sell in May and come back on St. Ledger's day" may be effective for equity investing, a strategy of buying in January and selling in May could be successful in commodities. Commodities rise 20% to enter bull market territory James Butterfill, head of research and investment strategy at ETF Securities and author of the report, said: "The buy in January and sell in May strategy delivers compelling returns relative to the benchmark, with the all-commodity baskets, agricultural sector and in...