September Is Historically A Tough Month For Stocks - Should Investors Be Concerned?
CNN reported that the month of September won't be as good as we expected. That's what's going on in investment markets right now. In 2022, stocks are going down. Because the stock market has always done the worst in September, which starts on Thursday, September 01. September is historically a tough month for stocks, there's nothing new about it.
Alberto ThompsonAug 29, 20222 Shares545 Views
CNN reportedthat the month of September won't be as good as we expected.
That's what's going on in investment markets right now.
In 2022, stocks are going down.
Investors are losing money, and it's natural for us to think that this is now the way things are.
Since summer is about to come in the Northern Hemisphere and the sun will soon rise in Australia, they don't have to be comfortable.
Because the stock market has always done the worst in September, which starts on Thursday, September 01.
September is historically a tough month for stocks, there's nothing new about it.
But don't react yet, even though the market as a whole went up in both 2019 and 2020, September was a bad month for the Dowand S&P 500.
That doesn't mean that stocks will lose money in September, though.
Each of the three September before the pandemic, stocks went up.
The first half of the year was bad for the stock market, which could mean that the recent recovery (the sharp rise in July and the flat, but choppy, August) will keep going.
Emanuel said, "A soft landing could be a plausible scenario," if this trend keeps going. This means that the Fed won't cause a recession by raising rates too quickly.
Alex Chaloff, co-head of investment strategy at Bernstein Private Wealth Management said that the worries about September and October from the past are less important this year.
And that there are more important factors at play.
There are a number of potential catalysts for a fall rally.
Chaloff said that if inflation keeps going down, "the market will cheer that significantly," and the Fed might be more likely to raise interest rates next month by only a half percentage point instead of three-quarters of a point.
Chaloff added that this could be "crucial" to get a rally going.
Chaloff also thinks that the economy could have a "soft recession", or at worst, a "mild recession."
He said that investors shouldn't worry too much about a sharp drop in the country because the strength of consumer and corporate spending will be more than enough to survive.
It means that if the economy keeps going strong and worries about inflation continue to fade, the market might now have a big drop in September.