"Sell in May and go away" is a term that has been attached to a seasonal bout of volatility global markets seem to encounter every year around this time.

emerging market fundsWhatever the reasons; spring fever, Vernal Equinox or NHL Hockey playoffs, markets have had some major drawdowns that often extend well into June.  Emerging Markets (EEMquote) during any period of global volatility tend to be even more affected due to the risk of herd mentality and because some of the great "May" events have been rooted in interest rate fears (rising rate trends) that often hit Emerging Markets hardest.

Since I have been managing hedge fund money, May/June in EM has been a period to respect the potential of chaos even when skies are sunny.  And despite this healthy respect, I have still found myself back pedaling trying to manage risk and simplify my portfolio as the period has progressed in a handful of years, never truly believing the macro fundamentals warranted such a storm... 

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