Simply put, September usually makes for an interesting month.
Historically speaking, September has statistically been the worst performing month of the year for the market. Not only that, but in years where midterm elections occur, as we find ourselves in now, the uncertainty of the elections can affect the market even more.
During this time, many Wall St. investors are also making their return from their yearly late-August vacation and we might start to see trading volume pick back up.
While September may appear to be wary, it’s often just a temporary rout.
The data also shows that in these midterm years, the market typically rallies in the 4th quarter to end the year strong.
Keeping this in mind, as well as how political risks from previous weeks haven't subsided much yet, we are remaining risk-averse with Round portfolios and want to stay this way until we start to see these risks subside.
Have a great weekend!
The "market" is in reference to the S&P 500. Claims in reference to September's historical market performance, the effect that midterm elections have on September's market performance, and the effect that midterm elections have on Q4 market performance have been paraphrased from the CNBC article "September is always a tough month for stocks but this year there are even more hazards" published by Patti Domm on August 29, 2018 and updated on August 31, 2018.
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