I’m Keith DeGreen and this is your Investors Minute.
U.S. and world indices have been volatile lately despite generally good economic news. Should we be worried?
Despite the often-cited supposed “need” for a long-over-due correction, keep in mind two market secrets:
First, the fourth week in September – that was last week — is typically the worst week of the year for stocks. This is when institutional investors often sell certain positions to purchase more productive positions as they enter the fourth quarter.
Second, since 1950 the average annual return of the S&P 500 the year following mid-term elections has been 16.1%.
We go to cash when things get dicey. But I believe that what we’re seeing may not be an indication of market direction over the next few months.
I’m Keith DeGreen. This has been your Investors Minute.
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