I’m sure you’ve been reading it everywhere. September can be a lousy month for stocks.
58% of the time, stocks have fallen. Overall, the Dow Jones has lost 1% every year in September (and that’s going back at least 120 Septembers!).
With that in mind, take a moment and consider these stats:
Gold has averaged a tidy 2% gain in price every September, going back all the way to the 1970s
Remove just the September gains from gold’s long term rise, and the rest of the months produce 0.6% gains for gold, on average.
Either way, good news for gold investors could be coming this month. Data shows the power of September gains over long periods.
Interesting, right?
We went looking for the reasons why, and found out MarketWatch is also very curious. Their 9/1/18 analysis found three key ingredients:
Gold is a hedge and diversifier for shaky September markets
Market timing investors use gold to hedge against the usual stock market problems in September. That’s one way pro investors keep ahead of the inevitable market swings.
Indian demand for physical gold spikes
Indian culture has a beautiful tradition of gifting real gold to wedding couples. Listen to this: there are over 20 million weddings a year in India! Demand for jewelry there skyrockets in September, during annual wedding season. This makes gold harder to come by everywhere in the world.
Daylight savings time weighs on investor psychology
Dirk Baur at the University of Western Australia says long term market studies show “negative investor sentiment due to shorter daylight time.” Nobody feel quite right when savings time changes hit and the days get short. Believe it or not, that curbs stock market investor enthusiasm just a little bit. You don’t have to be in Alaska to feel this effect.
Do you think the stock market will soon be playing the same sad September blues?
I wish I knew. To be honest, trigger-finger market timing is rarely a good strategy to find long term peace of mind.
All the same, gold could be a critical lifesaver in September. Use your common sense, and do what it tells you.
This is just a kind reminder that preparation is key to your wealth and health… anytime.
Writing in MarketWatch, Mark Hulbert recommends that investors consider their hard won gains today:
“If you can’t stomach much risk, then you should reduce your equity exposure to whatever your tolerance level is,” writes Hulbert. “And the market being at or near all-time highs is a good opportunity to reduce exposure,” he adds.
DO YOU KNOW THE FEEL OF REAL GOLD IN YOUR HAND?
We often talk about the investment appeal of gold here: diversification and safe haven benefits are among them.
But there’s another feature I’d like to mention. Almost all of our clients talk about it, and I know it is true for myself as well.
There is nothing like the feel of pure wealth in your hand.
It doesn’t matter if it be a coin or bar.
Instantly, you feel the clearly substantial, solid, deeply valuable nature of gold. Know what I mean?Always a bit heavier than you expect. It is just palpable. Easily brought to a lustrous shine, even in in a raw state. It is literally irresistible to the touch.
Thus, this asset has been prized and highly valued throughout thousands of years. Across all cultures on Earth.
It sounds too simple, but it is really just profoundly wise and universal.
Almost every paper currency has failed in less than 100 years. In 25 years, where will the U.S. dollar be?
In 2500 years, gold and silver will still be valuable as they were thousands of years ago.
Hold a paper note in one hand and a gold coin in another; it’s a no brainer. That’s the safe haven protection that investors often seek when buying precious metals.
Like you, I have assets diversified across different accounts and markets. I can see them all on my computer. That’s great.
But a part of me worries, what happens if this digital wealth is somehow erased or inaccessible?
Honestly, it is something to think about. Sure, this is a long shot, but it explains why many of the world’s wealthiest people feel their portfolios are best complemented by owning physical assets too.
Most accounts just show you a bunch of digital numbers on a screen. Physical gold and silver is way different.
In the home safe or Gold IRA, coins and bars feel just like the foundational pillars under your home. Rooted in bedrock. You can see and feel the wealth… just as you can walk through your home’s basement and feel how safe your family is up above.
MAKE THE CALL: CONSIDER YOUR OPTIONS
You’re literally surrounded by gold in everyday life. Your cell phone couldn’t operate without it. Gold is a superior conductor that no chemist has ever matched yet.
It isn’t too late to get positioned for the markets of September. And beyond.