A Rocky September – October 2, 2020
September has historically been a tough month for stocks.
- On average going back to 1970, September is the only month that registers a negative return for the S&P 500 Index2 (St. Louis Federal Reserve S&P 500 data).
- Peak to trough during September (9/2 – 9/23), the S&P 500 shed 9.6%.
What is behind the drop? We can point to several factors.
- Investors want another fiscal stimulus bill amid concerns the recovery might falter without new support. So far, Congress has failed to oblige.
- Daily U.S. Covid cases ticked up in September per Johns Hopkins. Covid cases jumped in parts of Europe (WSJ). There are fears that winter could fuel a second wave.
- Election anxieties and the potential for a disputed presidential election are creating some angst.
- Stocks were up sharply from the March low through the September 2 high, and the uncertain environment may be just the excuse to book profits.
Investors corner
Control what you can control. Stock market volatility is beyond our control, but a well-crafted financial plan is designed to reduce risk and help you achieve your financial goals.
If you have a comprehensive financial plan that has you on the path toward your financial goals, you are to be congratulated. You have chosen the narrow path.
Created 2020-10-02 15:20:07
