August 20, 2026
By Peter Bower
September is typically the worst month of the year for stocks. Many mutual funds and institutional portfolios’ fiscal year concludes at the end of this month. Therefore, it’s not unusual to see managers rebalance or make other adjustments to these portfolios. In addition, the summer slowdown ends with traders and investors returning. Trading volume often picks up, and many investors begin tax-loss harvesting.
No stock trend is a sure thing. However, it is a guide. It may be nearly impossible to be nimble enough to benefit from a short-term downturn. (Remember, the following fourth quarter is one of the best periods for stocks.) Then, there are tax implications that can make the odds of success much more difficult. So, for most investors, staying with a longer-term strategy is the best policy. However, being prepared to deploy more cash if given the opportunity makes sense. Also, culling poorly performing positions ahead of this period can provide the cash for upgrade opportunities.
Take advantage of the opportunities the market gives you. That is what good investors regularly try to do. Everybody likes a bargain. In the stock market, these are disguised with a wrapper of fear and concern. Don’t fall for these. Know your strategy, stick with it, and stay steady my friends.
-The Lonely Bull
