https://gam.gi/wp-content/uploads/2019/06/gamlogo.png 0 0 Mark Maloney https://gam.gi/wp-content/uploads/2019/06/gamlogo.png Mark Maloney2021-10-04 11:28:282021-10-04 11:29:13Market Commentary October 2021
September has presented the latest challenge to this bull market. The “September Effect”, as it is sometimes called, is often attributed to investors returning from holiday and starting to position for year-end. These investors may sell shares to lock in gains or capture tax losses to offset gains. Some may also be selling to acquire school gear for their children, which is not so much pens and notebooks these days but PCs and tablets. Why does this happen so often you may ask - if calendar events are so known, why are they not arbitraged away? It is because investor’s knowledge of past market patterns can make for self-fulfilling prophecies. This year, we view the September selling as a healthy and likely overdue shakeout of market excesses.
https://gam.gi/wp-content/uploads/2019/06/gamlogo.png 0 0 Mark Maloney https://gam.gi/wp-content/uploads/2019/06/gamlogo.png Mark Maloney2021-09-06 11:58:472021-09-06 11:59:52Market Commentary September 2021
This year, saying “all-time highs” has started to sound like a broken record. Nothing has seemed to rattle the market much in 2021, with volatility at historic low levels. But after the summer lull, things to tend to get exciting again for investors in September in what is historically the worst-performing month of the year, with the FTSE 100 falling on average 1.2%. However, although the average return is bad for the month, about half of all Septembers have positive returns. The problem is that when the market does fall in this month, the falls can be very large.
https://gam.gi/wp-content/uploads/2019/06/gamlogo.png 0 0 Mark Maloney https://gam.gi/wp-content/uploads/2019/06/gamlogo.png Mark Maloney2021-08-16 14:36:112021-08-16 14:42:08Market Commentary August 2021
When investors are disillusioned with the stock market, they tend to sell any rallies. And when they are willing to let the good times roll, they tend to buy any dips. So far, 2021 has been a year of buying the dips. During any trading year, a major index such as the S&P 500 routinely will dance above and below its 20-day moving average trendline. A more-meaningful sign of a dip is when the index approaches or falls below its 50-day moving average, regarded as intermediate-term support. On 18th June, the index fell under its 50-day m/a at 4,166. Within one week, it had recovered and hit a new all-time high, and stocks have been sailing ever since. In fact, the market could probably use a dip, just so investors can buy it.