09-17-2014, 12:12 AM
You'll read these kinds of stories all the time. You have the December portfolio cleanup month for YE financials by the big financial companies. "Sell in May and go away" -- referring to the summer doldrums because all the big shot traders are in the Hamptons for the summer. Us older gents sometimes use the October 87 crash as a touchpoint for October being the worst month although that's only because we lived through it. Parenthetically, I think the Great Depression started with the market crash in early October also. Statistically speaking, September is supposed to the worst month for returns going back decades. This was from an article on Marketwatch on 9/2/2014:
"But if you go back even further to 1945, it’s even more apparent where September gets it’s bad reputation. Sam Stovall, U.S. equity strategist at S&P Capital IQ, notes the S&P 500 has ended September higher only 45% of the time, the worst showing of any other month, declining an average 0.55%."
Personally, I'd just focus on buying quality companies when the price meets your criteria. You never know when Mr. Market is going to have a fit.
"But if you go back even further to 1945, it’s even more apparent where September gets it’s bad reputation. Sam Stovall, U.S. equity strategist at S&P Capital IQ, notes the S&P 500 has ended September higher only 45% of the time, the worst showing of any other month, declining an average 0.55%."
Personally, I'd just focus on buying quality companies when the price meets your criteria. You never know when Mr. Market is going to have a fit.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan