"August Curse" Hit Early in July? Possible Rebound in August?
In the past 35 years, August has been the second-worst performing month for $S&P 500(.SPX)$, $NASDAQ(.IXIC)$ and $DJIA(.DJI)$. History also shows that if the U.S. stock market performs well in the first half of the year, the likelihood of the "August Curse" increases.
Has the August Curse arrived too early this year?
As of July 25th, the S&P 500 index has fallen by 1.12%, and the Nasdaq index has dropped by 3.11%.
Looking back at the average monthly returns of the SPX from 1950 to 2023,
July has been the best-performing month over the past 20 years, followed by November and April.
In the past 10 years, July's performance has been second only to November. Although July's performance is slightly weaker in election years, it still remains positive.
Will August See a Rebound?
Most major index ETFs and individual stocks were up in pre-market trading.
Will we see a decent rebound this Friday?
Regardless of how the market ends this week, next week could face greater volatility as major tech and cryptocurrency stocks release their earnings reports.
Are you hoping for further declines to buy good stocks at a low price?
Or are you fully invested and praying for a quick rebound?
Will the market see a significant rebound in August?
Leave your comments and also post to win tiger coins~
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
回顧1950年至2023年SPX的月均收益，
Market rebound is uncertain, with volatility expected due to earnings reports and economic indicators. Next week's earnings calls - $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ $Apple(AAPL)$ $Amazon.com(AMZN)$ $Coinbase Global, Inc.(COIN)$.
Historical trends suggest a potential August upswing on election years, but no guarantees due to unpredictable market behavior.
1. Hoping for Declines to Buy Low: This strategy involves waiting for lower prices to invest in good stocks, potentially buying at a bargain. Given the historical tendency for August to be a weaker month for the stock market, this might present an opportunity to buy at lower prices. However, predicting the exact bottom is challenging and requires patience and a good understanding of market trends.
2. Fully Invested and Waiting for a Rebound: If you’re already fully invested, you might be banking on a market rebound to improve your portfolio’s performance. This strategy involves holding onto your current investments in the hope that the market will recover from its downturn and that the value of your holdings will rise.
How do you think?