Summer has come and passed
The innocent can never last
wake me up when September ends
- Green Day
I love all the experts coming out of the woodwork to explain why September is a nasty month for stocks. Some even deny that it is because there is no direct link to the economy or other funnymentals.
Yet there it is - with a track record.
Why does it provide bumps and bruises most - not all - of the time? How about "who cares?" It just does. Check this reasoning from a strategist to remain nameless:
"There is a reason why September has such a negative history," said Mr. X. He boiled it down to a question that market pros often confront about this time each year: "When you're a portfolio manager and you have gains for the year, do you pass that tax liability along to your customers or sell something you have a loss in?"
Uh, what does that have to do with it? You are selling something and that means supply in the marketplace. And what about 2008? Nobody had any gains going into September yet the market not only went down, it crashed!
September is a bad month because it is. Are you going to stand on ceremony or make money knowing that fact?