[ad_1]
We are facing a stormy period
In historical review September is definitely a bad month in the world of stock markets. According to research by LPL Financial, it can be said that
The worst average month since 1950 was the fall opening in September
– according to the brokerage house, the leading US index is on average produced a percentage drop in that month since 1950.
The September stock market mood, already rated woody, may be further tempered by the winds of the upcoming US presidential election. Although, as previously reported,
In presidential election year, US indices have performed especially well for the past 15 years,
a the escalation of the Sino-US conflict and the second wave of the global coronavirus epidemic Thanks to this, it is very likely that September of this year will also join the ranks of September of the last 70 years.
October won’t necessarily get better either – According to analysts at LPL Financial, in this month’s election years, the S&P 500 has fallen by an average of nearly one percent over the past 50 years, thus
the second month of fall can be recorded as the worst month of election years.
This figure faithfully supports the presence of an overheated and nervous investment climate ahead of the presidential elections, conditions that we can certainly also expect this year.
So far, US equity markets have skyrocketed
the The S&P 500 surpasses 8 percent this year
and the tech-overweight Nasdaq is beyond an incredible 38 percent surge
– only more in the last month, the value of the index increased by more than 11 percent. The comet-like performance of Apple, Tesla, Microsoft, and Zoom, among others, can be attributed to the euphoric mood of the stock market in recent months, while Investors are less and less concerned about the real and intrinsic value of stocks.
Many analysts and experts remain optimistic about the future, despite possible seasonal effects and other worrisome global conditions.
Brian Levitt, market strategist at Invesco, said in an interview:
I remain optimistic. There will be a recovery: monetary policy will adjust to the circumstances, base rates will remain low indefinitely around the world, and real returns will be negative. In my opinion, we can now witness the beginning of an extended global bull market!
Cover Image: Frank Rumpenhorst / Picture Alliance via Getty Images
[ad_2]
