- September is the toughest month for stocks, but this time could be different
- Regardless of September fears, the setup is about as good as it gets
- The three issues of most concern to stock traders — earnings and the direction of earnings estimates, profit margins, and interest rates
Since 1945, September has been the worst month, on average, for the S&P 500: Here’s the problem: It hasn’t worked very well recently. But this time could be different says an article on CNBC.
Shares have already risen
The ninth month is traditionally the worst of the year for stocks. September has been up for three of the last four years. A lot of the old seasonal trading rules (sell in May and go away the January effect, best six months trade, etc.) have not worked as well in the last few years.
Economy since the financial crisis
Some believe these old saws are being disrupted by the oceans of cash the Federal Reserve has been showering on the economy since the financial crisis in 2008. “There is so much liquidity out there,” Art Cashin from UBS told me.
About as good as it gets
Regardless of September fears, the setup is about as good as it gets. The three issues of most concern to stock traders — earnings and the direction of earnings estimates, profit margins, and interest rates.
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Source: CNBC
