It appears the bull U.S. equity market has no respect for the calendar and the old adage of "sell in May and go away." The S&P returned 2.1% in the month and rewarded investors along for the ride.
In fact, no matter how you slice it by geography, investors have been rewarded handsomely year to date, despite lingering concerns regarding the overall pace of recovery of the developed world's economies and strength in emerging markets, particularly China.
Being bottom-up stock pickers, we at Morningstar find it challenging to recommend many equities amid a strong market rally. Certainly, there are a number of companies out there that are great businesses that some would consider owning no matter where the markets go, but we caution that "buy and hold" isn't the same as "buy and forget." It is critical for investors to examine their holdings thoroughly and frequently, no matter how safe those positions appear to be, because even the best companies out there could become overvalued. Click to read the full report.
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