More challenges for markets seen in May

WILL the month of May be more challenging than the usual “sell in May and go away”?

Political uncertainty is an issue. In Malaysia, it will be general election in early May while in the US, it will be mid-term elections in six months’ time. Inflation and rising US Government bond yields are major issues causing stockmarket jitters. As bond yields rise, making bond prices cheaper and more attractive, the recent pick-up in short term bond yields is also considered a warning sign.