Labor Day isn’t just the symbolic end of summer. It’s typically a turning point for the stock market.
As the leaves start to fall and the kids go back to school, the hustle and bustle returns to Wall Street. That means volume picks up. Oftentimes, that means stocks sell off.
September is historically the worst month for the stock market. It’s the only month, in fact, in which the S&P 500 has posted a net loss since the index’s inception. Part of the reason is that major market participants returns after Labor Day and sell off – either to book their summer gains, or because they don’t like what they see upon their return.
With stocks closing yet another week at new all-time highs, it’s impossible for any investor not to like what he sees. But there could be a flow of people getting out of positions to preempt a possible market correction. If that happens, then we could be in for another rough September.
But remember: Wall Street analysts and CNBC talking heads have been warning of a massive pullback for a couple years now. Every time, stocks have risen higher still.
So enter September trading with one eye open. But don’t let history dissuade your from seeking out the next great investment opportunity.
Speaking of which, this week our own Tyler Laundon wrote about a small cap stock that netted his subscribers a return of more than 100%.
Here’s what else was on our analysts’ minds this week at Wyatt Investment Research:
The Three Best Dividend Stocks To Buy In September– While there is no definitive end in sight for this seemingly endless rally, eventually it will come to a screeching halt … probably when we least expect it. When that happens, you’ll want to have protection in your portfolio.
How To Learn Options In Less Than An Hour– There’s a myth that options are difficult to learn. In actuality, they can be very simple … if you follow these three steps.
The Small Cap Stock That Didn’t Get Away– Small cap investing is a lesson in perseverance. If you give up, you will lose. But if you stay in the game and keep working at it, you will win over the long-term.
Three Back-to-School Stocks To Fill Your Investment Tote Bag– If you’re like me, an army of nine- and 10-year-old kids wearing backpacks and new sneakers have suddenly appeared on the corner of your street every morning. My first thought every time I pass them? Someone is making a killing from all those new backpacks and sneakers this time of year.
Why This Income Investment Just Might Be the Perfect Investment– Perfection might be impossible, but this one investment is as close as it gets.
Be Prepared: The September Stock Market is Known for Surprises– September is historically the worst-performing month for the market. It’s referred to in some circles as the “danger” month as it is one of the few months with an overall negative return.
Why Income Investment Are the Only True Investments– Do you know the difference between an investment and a speculation? Most investors don’t.
Three Retailers That Will Thrive In the Digital Revolution– The Internet has quietly become the killer of things. With a click of the mouse, consumers can get almost anything and everything. The digital revolution has forced some of the nation’s top companies into bankruptcy. But not these three companies…
VIDEO: Q2 Earnings Keep the Bulls Well Fed– Russia and Ukraine. Israel and Palestine. Argentina default, Portuguese debt, a possible third Iraq war. All of those geopolitical events have threatened to derail this bull market. But Q2 earnings saved the day … at least for now.
Thanks for making us part of your weekend. Throughout the week, please make sure to visit WyattResearch.com for the information you need to know and opinions you need to read to become a better investor.
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