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Market Update: Is this the September Correction?

After four straight strong months for the market, it might be time for a pause.

Going back to 1950, September is the weakest month for the S&P 500. Over the last 10 years, it averages a -0.7% decline and is positive only 46% of the time. It’s the only month of the year where the S&P 500 averages a loss.

September has been surprisingly strong, but late September is historically a weak period in the markets. So, it wouldn’t be surprising to see some consolidation from here into early October.

Now is also the time when volatility tends to pick up.

In the past week, both the VIX and stocks have moved higher in unison. Historically, this has almost always led to a pullback in stocks within the following weeks.

The best way to take advantage of pullbacks is to be prepared. That means having enough cash on hand and having your buy list ready.


  1. Make sure you don’t give back too much of your profits. Keep your exposure to risk-on, momentum or growth names in check. Be patient before allocating new capital. And make sure to keep small losses from turning into big ones.

  2. Build a watchlist of the best names. So, you know exactly what to focus on and you’re ready when a new uptrend begins. You want to know exactly what you’re buying and why. Preparation is everything.

This could be the first real pullback since the historic rally off the April lows. But as long as the primary trend remains up and the broader bull market is intact, pullbacks are opportunities.