What September Could Bring For Investors

For the past 50 years, September has historically marked the worst month of the year for the Dow, with stocks down on an average of 1%, as can be seen from below chart.

Wake me up when September ends…

Greenday fans out there may well recognise that lyric. Billy Joe Armstrong probably wasn’t singing about investing, but he was on the money. September has long been seen as a bogey month for investing. Why, you ask?

What could make September miserable?

Aside from that bleak historical perspective, what else might make September 2022 a month to forget for investors?

#1 A rebound at the pumps

Oil prices hit a record high earlier this summer, but have fallen sharply in recent weeks.

#2 Rising food prices

This is also nothing new. There are numerous factors at play here. For the UK, Brexit may be a factor. Fuel prices certainly played their part as containers of food became more expensive to transport by road, sea or air. The continued war in Ukraine has made a dent in global markets for food, fuel and fertiliser too.

#3 That creeping recession…

Like it or not, the next recession is well overdue. While it may not quite arrive precisely in September, investors are increasingly wary that its on the way.

How did we do?

Did we miss a key warning sign? Is a recession approaching? How have you adjusted your trading strategy to cope with it? Let us know by tweeting us at @_Contentworks.

Top trading events this week

Here are the hottest events for your trading calendar this week.

Monday

No major events are planned.

Tuesday

● AUD — Westpac Consumer Confidence Index (AUG)

Wednesday

● CNY — Inflation Rate YoY (JUL)

Thursday

● CNY — New Yuan Loans (JUL)

Friday

● GBP — GDP 3-Month Avg (JUN); GDP Growth Rate YoY Prel (Q2);

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