May is here and many investors are expecting stocks - after the last 6 months of great returns - to grow at a slower pace. Historically, the months of May through October is the slowest growth period for stocks. But with 40% of American Adults fully vaccinated and new Covid-19 cases at their lowest levels since October, the old saying of 'Sell in May and Go Away' might just be thrown out the window - as the economy seems to be ready for a complete reopening.
Economic reports from last week came back mostly positive:
•Manufacturing (Dallas) - better than expectation •Manufacturing (Richmond) - worse than expectation •House Prices - in-line with expectation
•Pending Home Sales - worse than expectation •Consumer Confidence - better than expectation
•Consumer Sentiment - better than expectation
•Jobless Claims - better than expectation
This week, investors will look for guidance from economic reports like Construction Spending, Vehicle Sales, Employment, Jobless Claims and Consumer Credit.