Should you do anything about the “September Effect”

Should you do anything about the “September Effect”

by Aurora Financial — Posted on August 23, 2019

One of the historical realities of the stock market is that it typically has performed poorest during the month of September. On average since the 1950’s, September is the month when the stock market’s three leading indexes usually perform the poorest. Some have dubbed this annual drop-off as the “September Effect.”  

.

 

Although this does seem to still exist (albeit at lower falls in more recent years), there are many reason and ideologies as to why it does.  Including lower deals during the holiday month and end of year institutional investors accounting procedures.  Assuming you’re not prepared to look at the markets every minute of every day, switching your funds just to see if this reducing trend continues in order to protect your investment from this prophesy (which usually, once you’ve invested your own money generally stops then trending).

  .   Needless to say, a good long term strategy should be adopted for long-term financial planning.  Look at our long term investment models, as surely short term investing, is really just gambling, albeit possibly with some insight….!