August has been a very kind month as both HK/ China and US stocks rose. The pullback didn’t happen.
This September will be different from previous ones as everyone is hoping for the rate cut that has been slow to come since the last one. If the Fed gives marker what it expects, there is a good chance that market would rise on that optimism.
The September effect is probably just market trend to me as investors and traders review their portfolio and adjust accordingly. So, it is scientific in that sense and nothing superstitious. Market fluctuations often usually in accordance to market events like earnings season, inflation reports, and in recent times, war and the ceasefire.
As traders and investors, we manage the risk and do our trades accordingly. I think it is more important to remain steadfast, clarity in goals and risk management.
If the market dips, I will be looking at adding more VTI. It is diverse and in the longer term, the world index will likely rise more than fall.
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