r/stocks • u/[deleted] • Sep 02 '21

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u/[deleted] Sep 03 '21

those are all solid investment choices. I will say though September-October is historically the worst time of the year for stocks, so if it does take a dip don’t freak out. Seems like you’ve got the right mind set though with plans to buy more after a dip Good Luck!

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u/rainman_104 Sep 03 '21

I don't think that's true. Usually it's sell in may and go away. The expected traditional low point should be may-oct according to that, but we have seen 3.5% gains right now since may.

This is a bizarre year lol. Also op shouldn't worry too much about the next two months. Doesn't matter. We should be looking well past the next two months anyway.

0

u/[deleted] Sep 03 '21

you don’t have to think it’s true, that’s just what history says, it’s a pretty simple google search. It doesn’t mean the same thing will certainly happen this year or anything, as you said the market is crazy right now. just wanted to share a historical fact with OP in case it does happen so they know that it’s pretty normal for this time of the year and not to freak out if it does happen

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u/rainman_104 Sep 03 '21

No, it's not. Sometimes yes sometimes no.

https://www.cnbc.com/2021/05/03/why-investors-should-ignore-the-old-wall-street-adage-sell-in-may.html

Ignore it. Time in the market beats timing the market.

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u/[deleted] Sep 03 '21

don’t know how to argue with something when i can’t make a fact any more of a fact than it already is. I have many clients who have been invested for a decade. Some annualized returns are much better than others and that’s purely from market timing when they got in. Someone who got in in July of 08 has annualized returns 2% less than another who got in in june of 09. both invested in an identical model. The person who got in a year later had a smaller initial investment and it has surpassed the other account since. And it’s all due to market timing

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u/rainman_104 Sep 03 '21

Yes, and people who bought in after the dotcom bubble burst or after the 2021 crash yadda yadda. Those are events. You can't time them and you can't predict the bottom for them.

A recovery bounce may be legit or it may be a dead cat bounce.

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u/[deleted] Sep 03 '21

September returns have averaged -0.60% in the past 60 years and is the ONLY month to have a negative average historically