August 31, 2022 (Investorideas.com Newswire) September is traditionally the worst month of the year for stock markets – but this year could be different, says the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The comments from deVere Group’s Nigel Green come as August comes to a close hailing the end of summer for those in the Northern Hemisphere, and as investors revise and adjust their portfolios as we move into the most critical time of the year to lock in gains.
He says: “February and September are both historically bad months for stock markets, but September is usually worse.
“There are different suggestions as to why this is the case. For instance, some insist it is because investors are selling-off to secure some capital for the year; some say it’s down to funds paying out, encouraging selling for tax reasons.”
However, the deVere boss believes this year might be different.
“Stock markets had an unusually rough first half of the year and much of the major disruption has already taken place and future jolts priced-in.
“In addition, we expect higher than usual institutional investor activity – supporting prices – due to the current lower valuations. They’re thinking ahead to what is going to happen, not what has already happened.”
Nigel Green says individual investors should be taking advantage too in the same way.
“There are some important long-term opportunities right now with high upside potential and low-risk possibilities. But you must buy wisely in this current volatile environment.
“You should bear in mind that long-term and short-duration assets respond differently to rising inflation and interest rates.”
He goes on to say that, as ever, certain sectors will do better than others in the coming months. “These include energy, financials, healthcare and pharma.”
Despite his generally bullish sentiment of the so-called ‘September Effect,’ the deVere CEO also issues a warning.
“There are many headwinds ahead for the rest of this year that could impact investor returns.
“One of the biggest – and most overlooked – is the rising risk of large-scale social unrest.
“The global cost of living crisis is the major contributing factor. When people can’t feed their families, get to work or take their kids to school due to high fuel prices, or heat their homes, it’s an almost inevitable recipe for large-scale civil unrest.”
He concludes: “Investors should ignore the noise about The September Effect and focus on fundamentals.”
t: +44 207 1220 925
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com