Sell in May and Go Away?

"Sell in May and Go Away? Well, so far you would have done well to heed that advice. All the indices we follow fell in June. (See table below) Indeed the FTSE SCS index was down 4.23%. It's interesting that the two powerhouses this year - Support Services and Media also fell.

There are a growing number who are getting increasingly concerned about the economy as a whole. Higher interest rates are really starting to have an effect as the warning from Tesco in June indicated. Consumer spending effects many parts of the tech sector directly. "Maybe the iPhone will have to wait if i can't pay the mortgage?" But it also affects the whole corporate IT sector too. Outsourcing tends to be "non-cyclical" but other sectors - hardware and software in particular - are prone to economic uncertainty.

But on the other hand, M&A boosts share prices in unnatural ways. Maybe it was just a shortage of tech M&A in June that cause the "blip"?