September 2024 Could be a BLOODBATH…. 

It’s not often I open with a dreadful headline… but September is a very scary month.

Here’s why…

October is known for stock market crashes

If you’re a student of the stock market, you know that every so often the market crashes.

And no, I’m not talking about a little dip in price… I’m talking about a catastrophic wipe out type of crash.

The big one is October 24, 1929 - better known as “Black Thursday”. On that day the market opened down 11%!

What was more disturbing… the slow movement of information at the time.

So many trades were placed at the market open, the ticker was running hours behind.

Imagine how investors felt knowing stocks were in a freefall - but not being able to get a quote! After a few banks intervened, the market stabilized… for a hot second.

The market fall continued shortly thereafter. The downdraft in the market caused a huge wave of margin calls that led to “Black Monday”... where the market lost more than 12%.

Of course, that wasn’t the end. Monday’s selling spilled over to “Black Tuesday” where the market fell another 11%+

That horrible October signaled the start of the great depression.

There’s probably very few - if any - people around who were actually trading during the October 1929 collapse… but I remember the next big October crash!

Black Monday - October 18, 1987. I was still in school when this market collapse happened.

I remember my social studies teacher listening - IN CLASS - to the radio reports of the market falling.

All told the market fell 22%... and the news was full of fear. I remember reports of some traders taking their own lives.

It’s strange to think back on that time… I know the crash only piqued my interest in the markets.

These two major events have clouded views of October - a seeming cursed month.

By the way if you’re interested in market crashes - this is a fascinating article: Stock market crash history.

October may sound cursed… and get all the headlines but….

SEPTEMBER Is Far Worse

While doing my research, I found this great article HERE.

It’s about market returns on a historical average.

A few things jumped out.

FIRST - the data they pulled was almost 100 years… 1928 to 2023… so it’s a huge data set.

SECOND - the average return over the last 30 years is 10%... It just proves long term investing is the way to go.

THIRD - this chart shocked me…

Source: https://www.nasdaq.com

This shows on a consistent basis September has been a horrible month for the markets. Now, you’ll note September doesn't have any big market declines.

It’s like the little engine that could - but going in the wrong direction.

September is a wealth destroyer.

Like your buddy who asks to borrow money all the time - and never pays you back.

September sinks its fangs into your wallet and doesn't let go.

So, do you sell everything and walk away - because it’s September?

No - of course not.

What you do is play the averages… Work up a list of great stocks to buy - when they go on sale next month. Be prepared to move quickly.

Buying on the dip is a great way to get quick gains (when the market rebounds)!

Oh - don’t forget Chairman Powell and the rest of the Fed meet on September 17 & 18… I’d expect a huge amount of volatility. The market is expecting a rate cut.

But of course, any crazy news will create huge market swings… so hold onto your hat!

Let me know…

What stocks are on your “buy on the next dip” list? Pick one and let me know - maybe I’ll write about it.