September is a fascinating month for the markets.
It is traditionally the worst month of the year. That is, over the past
60 years, if you had invested only in September, your return would be
lower than that of any other month. In fact, you would lose about .6%
EACH YEAR, on average.
Yet, over the last five years, September has been far more
promising. It had the second best monthly return both last year and over the
past three years. (One year = 3.5%) (Three years = 2.2% yearly)
So, we are now likely beginning to enter a positive season for the markets. The seasonally bullish season used to begin in mid October but now seems to begin as early as September.
That said, do you think we should hold on or use the upcoming rally (assuming that we see one this year) to exit the markets? Will we see another bear cycle next year? What are your thoughts?
