This September could be an exception,ie, not likely to see market decline. Why I think so? First, we are expecting Fed cut on interest rates. This means it will be more affordable to trade/invest in equities with lower interest or cost of capital.This can also lead rotation of funds from bonds, t-bills, and money market funds into equities now that there is more potential for growth and lower returns from fixed income. The second reason is that this August is different and also an outlier- it's not bullish at all as we experience the Black Monday as result of Japanese Yen carry trade. Now stocks are still near support and still potential to recover. I will remain bullish but cautious too and act accordingly as the market present itself.
September Curse Broken? What's Your Account P/L?
It looks like the curse of September's market drop is going to be broken this year. Historical data shows that since 2013, the S&P 500 has averaged a 4.78% decline in September, which is typically the worst-performing and most volatile month for U.S. stocks. However, this year, with a gain of over 20% and recent strong performance, the S&P 500 has already hit its 40th new closing high of the year this week!
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Has your account also broken the September curse?
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