1. The U.S. stock market has gained for four months but faces a historically challenging September, with an average loss of 1.04% since 1990.
2. Factors like increased volatility, institutional selling, and individual investor behavior contribute to the "September Effect."
3. This year may differ due to an expected rate cut by the Federal Reserve and it being an election year, which typically sees less negative impact.
4. Investors can protect against volatility through strategies like volatility trading, high dividend trading, and holding cash.
5. Historically, U.S. stocks rebound strongly in the fourth quarter after September declines.
My Thoughts
- I think a sell off is imminent in Sep.
- It's a good chance to allocate more as many feel Q4 would be bullish.
- Imo, this year looks set to have a great ending. It would take a black swan event to really crash the market.
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