“I wasn’t the fastest guy in the world. I wouldn’t have done well in an Olympiad or a math contest. But I like to ponder. And pondering things, just sort of thinking about it and thinking about it, turns out to be a pretty good approach.” – Jim Simons (April 25, 1938 - May 10, 2024)

Good evening,

An old stock-market adage calls for investors to “sell in May and go away.” Yet to Fundstrat Head of Research Tom Lee, multiple factors make it wiser to “buy in May” this year. Stocks rose this week to extend their weekly win streak to three, and Lee believes more gains are likely for this month. 

In his view, stocks were helped by soft jobs data from last Friday (May 3), which helped convince investors that the “economy is no longer red-hot” and that the Fed is thus increasingly likely to stay dovish. Those numbers are also consistent with the latest weekly unemployment data, which rose to the highest level since August 2023. 

The unemployment claims sparked a discussion during our weekly research huddle. Fundstrat Head of Data Science Ken Xuan said, “I don’t really pay attention to any single week’s unemployment numbers. The number is good for stocks, but from a data-science perspective, you need to look at it over a longer period to s...

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