Friday, September 04, 2009

September is usually the worst month of the year!

No, I do not think September will be the worst month of 2009. The worst should be far behind us. However, the stock markets have gotten far ahead of themselves. Those of you that I have met with in the last six weeks know I have been standing on one foot and then the other, because the stock markets have been recovering and I felt I should be investing the second half of clients' investable money. Yet, historically, September is the worst month of the year for the stock market. So I have been waiting and biding my time until September got here.

Since the majority of you have been out of the markets for most of 2008 and early 2009, we are far ahead of the October 11, 2007 to August 20, 2009 stock market returns. As the markets recover, you stand to make some very nice returns that those who rode the stock markets all the way down can only dream of. That is, if I get the rest of your money back into the markets. Up until now for 2009, we have been beating DJIA and S&P 500 indexes and the Nasdaq index has been beating us. I am very competitive and would love to beat all of the indexes. However, this is not only impossible but, at this point, it may be taking your risk tolerance levels beyond what you want.

Most everyone I have visited with recently has agreed the prudent thing to do is wait for September. So we wait for a few more days to see what September will bring us.

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