Despite the strong stock market performance in August, many are still focused on the historically poor stock market performance in September, so MoneyShow’s Tom Aspray takes to the charts to suggest when, where, and how much to invest this month.
The US stock market churned at new all time highs last week as the market had to endure a heavy slate of economic data as well as the new efforts to lower global tensions.
Despite the surprising strong stock market in August, many are still focused on the historically poor stock market performance in September. As I pointed out two weeks ago, I continue to think that a pullback in September will present a buying opportunity.
Even though the stock market has been strong and the economy seems to be getting even better, many investors are still on the sidelines. Some have stayed out because of the dot.com bubble while others are still trying to recover from the 2008 financial crisis.
All year the mainstream financial media has also given the investor plenty of reasons not to invest in stocks. During the spring and early summer, the argument was that the economy was not strong enough to support the current high stocks prices. The dismal 1st quarter GDP supported this view.
The strong technical readings continue to favor investing in stocks, especially with yields so low, but given the market’s current lofty levels, investors are likely wondering how much they should invest and when they should buy.
Source: Markets
