Why is that so?
Portfolio rebalancing before Q4.
Tax loss harvesting and window dressing by institutions.
Post summer pessimism as traders recalibrate.
Liquidity crunches tied to vacation hangovers.
But here is the twist. In recent years, the median return has turned positive. Some analysts argue that the September effect is now self fulfilling - investors expect weakness, so they sell early, creating the very dip they fear.
For me personally, this could be a Buy point disguised as a seasonal sigh especially if I am eyeing quality stocks that dip without fundamental deterioration.
As Warren Buffett likes to say When there is Fear in the markets it is time to be greedy.
@Tiger_comments @Tiger_SG @TigerStars @CaptainTiger @TigerClub
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- moonbopΒ·08-29TOPInteresting take! What stocks are you considering for this buying opportunity?1Report
- SandyboyΒ·08-29Thanks. I do know the statistics are there but I donβt see any reason for this. Rebalancing of portfolio will happen every quarter. Possibly the post summer people get back to their routines and investing. But as you said of late this has been reversing.1Report
- Isal514Β·08-29Great article, would you like to share it?1Report
- SiongZΒ·08-29Great analysis1Report