The stock market is about to implode! The dreaded ‘September effect’ could wreak havoc on investors once more.
AS FINANCIAL AND POLITICAL PROBLEMS INCREASE, THE STOCK MARKET MAY COME crashing down this month. September has historically been the worst month for stocks, and history may soon repeat itself.
The cruelest month for investors is September, and many investing experts are predicting a stock market catastrophe this month. How should you safeguard your money from the September effect? Top investment managers are taking evasive action, so how should you secure your money?
Autumn is notoriously difficult for investors. In September or October, the Wall Street Crash of 1929, Black Monday 1987, the 9/11 attacks in 2001, and the fall of Lehman Brothers in 2008 all occurred.
Jason Hollands, managing director of fund platform Bestinvest, believes we should be concerned based on history. “September is a risky month for investors because it is known for its unpredictable markets. This isn’t just a legend.”
Global stock prices have fallen in 21 of the last 40 Septembers, making it the only month in the last 40 years in which stock markets have fallen more than half the time.
In addition, September is the only month of the year in which stock values have fallen on average.
According to the MSCI World Index, stock markets have had a solid start to the year, surging 16.2 percent.
Covid vaccine optimism, as well as major monetary and fiscal stimulus programs, have fueled the surge, but Hollands warned that it may not persist.
“Global equity markets have been losing steam. According to anecdotal information, some fund managers have been buying derivatives to hedge against market declines.”
As the costs of products and services begin to rise over the world, inflation is a huge danger. To prevent the economy from overheating, central bankers may be forced to raise interest rates and reduce stimulus programs.
Higher borrowing costs will stifle growth and raise the cost of servicing government debt, which has risen dramatically as a result of the outbreak.
Other grounds for a stock market meltdown, according to Hollands: “Historically high values for technological businesses, high levels of corporate debt in the United States, and concerns about a surge in the Covid Delta variant raise concerns.”
Geopolitical dangers are also increasing. “These include concerns over whether Afghanistan would once again become a safe haven for terrorists, as well as escalating US-China tensions.”
It is critical to maintain your composure.
Anyone investing money in, according to Hollands. “Brinkwire News in Condensed Form.”