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The inventory market skyrocketed in August, but investors do not expect profits to continue, at least not for the next two months, LPL said in a note released Monday.
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But what follows a strong August tends to be a weak September.
Since 1950, September has been the worst month of the year for stocks on average, and when August is a strong month, September is a bad month for stocks.
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LPL’s market-leading strata, Ryan Detrick, said that “the last two times August higher through more than 5% were 1986 and 2000, the S
During the election years, September and October tend to be weak months as investors prepare for a dubious presidential election.
“What caught our attention was that September and October had a negative setback in the election years, with October being the worst month of the year,” Detrick added.
LPL Research
During the election years, the S
While noting that the existing inventory uptick is “extremely tense,” Detrick suggested that investors “continue to use any slowdown as an opportunity to raise longer-term core inventories as the economy continues to reced faster than expected,” the note concluded.