With an uncertain summer ahead for financial markets, BMO Harris Private Bank says investors may lose out by choosing a “Sell in May and Go Away” approach to investing.

“While the ‘Sell in May’ approach to investing is an interesting one, attempting to time the market is not advisable for the average investor,” says Jack Ablin, chief investment officer, BMO Harris Private Bank. Ablin notes that, if investors had sold in the spring of 2009, they would have missed out on substantial gains. In fact, in Canada, between 2003 and 2007, stocks rose during the summer months.

“Investors should adopt a long-term, diversified approach that maintains a return on your investments, while hedging against unnecessary risk,” says Ablin. “This includes building a portfolio that allows you to be active throughout the year and contains a variety of investments that are both conservative and aggressive. That way, if you prefer to lessen your exposure during certain periods, you can remain in the market and weather the highs and lows of the summer.”

As the weather gets warmer, BMO Harris Private Bank says investors should consider these three key factors.

1. Credit conditions in the Eurozone: While recent headlines in Europe have cast a shadow on the global recovery, the risks posed by the sovereign credit crisis will likely diminish and should not negatively impact North American markets in the long term. While daily stock market valuations may be affected, this will not necessarily translate into a permanent market loss in the United States or Canada.

2. The U.S presidential election and pace of the economic recovery: With an overhang of debt and upcoming fiscal challenges — such as the end of the quantitative easing period — coupled with this being an election year, the market can expect periods of economic distraction and a less linear path to recovery over the next couple of months.

3. Growth in China: China’s GDP will likely grow by 7.5% by the end of 2012. The projected growth for China, as well as the international economic approach the country’s leaders are taking, will continue to provide a solid backdrop in maintaining the global recovery.