The Elusive Pending Stock Market Crash

By David Bahnsen

New York Stock Exchange
(Photo by Silveira Neto) (CC2.0)

The month of August has done some crazy things over the years in the markets (of course, truth be told, that can be said of any calendar month). In 2011 we saw a massive Europe-driven drop in the stock market that waited until October to begin recovering. In 2015 we saw the market drop nearly 1,000 points in one day (before recovering a bit), and giving markets the first “correction” it had experienced in years1. The real actual beginning signs of the credit crisis that became the great financial crisis actually launched in August 2007 (sub prime markets completely freezing), even though the major headline events wouldn’t come until September 2008 (Lehman bankruptcy, etc.)2. We resist efforts to derive significance from any calendar reality because those efforts are juvenile and potentially dangerous. What August has in common with every month of the year is the need for measured and careful analysis, and the primacy of investor behavior in driving long-term results. There is a lot to chew on this week, and we think it is comprehensible and interesting, but nothing in this week’s Dividend Café will trump …read more

Source:: Affluent