The Cruelest Month

T.S. Eliot said that April is the cruelest month. But among stock investors, September’s got it, hands down.

Since the Dow average was first calculated, the average market return in September has been minus 1%. All other months have been up about three quarters of a percent. September has been the worst.

Does this mean pull your money from the market now? Not on your life! There’s no fundamental reason why September should be the worst month–it just happens to work out that way. Remember, out of 100 random variables, five of them will be statistically significant–even if we know that they’re just random numbers. That’s what I call “pictures in the clouds.”

Without underlying justification, investing on price patterns alone is unlikely to be rewarding. Memory and desire are undependable guides.


Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T20:59:00+00:00 September 2nd, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
Leave a comment if you have any questions—I read them all!
– And Follow me on Twitter @GlobalMarketUpd

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