__________________________________________________________________________<\/p>\n\n\n\n
How Can You Prepare for a Potential Market Correction?<\/a><\/strong><\/p>\n\n\n\n If you are wondering what you should do in anticipation of a\npotential market correction, we encourage you to continue to protect your\ninvestments. Don\u2019t make any drastic moves, but remember to stay calm and base\nyour decisions on fundamentals and research!<\/p>\n\n\n\n In our just-released Stock Market Outlook report, we provide\ninsight on how to focus on the facts and hard data. This report contains some\nof our key forecasts to consider such as:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today!\u00a0 __________________________________________________________________________<\/p>\n\n\n\n What proponents often leave out of the discussion is the\nfact that terrible Septembers during the Great Depression, the 1974 bear\nmarket, the 2001-2002 bear market, and the 2008 Global Financial Crisis are all\nweighing down the average. What\u2019s more, when you look at the S&P 500 over\nthe last 25 years, the September Effect loses just about all of its luster. The\naverage monthly return for the S&P 500 is just -0.4%, and the median\nmonthly return for the index is positive<\/em>.\nIn my view, those just aren\u2019t statistics that support overhauling your asset\nallocation. <\/p>\n\n\n\n In the current year, September skeptics are pointing to the\nongoing pandemic, inflationary pressures, and the situation in Afghanistan as reasons\nto avoid stocks. To be fair, I\u2019m not saying September will surely be positive. I\u2019m\njust making an argument against the certainty that it will be negative, and\nhighlighting why you should not try to time the market based off market noise\nlike the \u201cSeptember Effect.\u201d To me, the \u201cSeptember Effect\u201d is not a reliable\nindicator because past returns do not predict future returns, and believing\notherwise often drives investors to engage in short-term market timing \u2013 which\nI strongly oppose.<\/p>\n\n\n\n I have also seen folks argue recently that the stock market\nhas not corrected in several months, and must therefore be due for a pullback\nthis fall. I do not disagree that the stock market is due for a correction in\nthe realm of -10% to -20%, but I do disagree with anyone who seems to know when\nit will occur. <\/p>\n\n\n\n Corrections are by definition unpredictable in onset, duration,\nand size. If anyone could predict them, that person would not only be wildly\nfamous, he\/she would also likely manage everyone\u2019s money. But such a person\ndoes not exist. The next stock market correction may start tomorrow, one week\nfrom now, one month, or one year from now. No one knows. <\/p>\n\n\n\n What I do know, however, is that stocks are priced based on\nforward-looking fundamentals and earnings\/earnings expectations, all of which\nlook good to me in the current environment. Total S&P 500 earnings in Q3\n2021 are expected to be up +26.2% on +13.3% higher revenues, and the chart\nbelow shows how Q3 estimates have been pushing higher since the start of the\nyear. It may be September, but corporations are feeling confident about the\noutlook in the next few months. And that\u2019s what I think investors should care\nabout most.3<\/sup><\/p>\n\n\n\n The \u201cSeptember Effect\u201d endures as a popular stock market\npattern, but not because it is a particularly good or powerful indicator. It is\nneither. It endures because investors often look for patterns to help explain\nunknowns, and September\u2019s reputation as the only negative month is seemingly\nenough to give investors an edge. But past returns do not drive or predict\nfuture returns, and what has happened historically in September bears no weight\non what may happen this September \u2013 or any future September.<\/p>\n\n\n\n No month or time of year is better for stock market\ninvestors than any other. What really matters, in my view, is how earnings and\nearnings expectations may evolve from here. And from where I sit, it\u2019s so far,\nso good. <\/p>\n\n\n\n To be prepared for any market outcome, we recommend staying focused on key economic indicators. Our\u00a0Just-Released September 2021 Stock Market Outlook Report<\/a>4<\/a><\/sup>,<\/strong> will give insight into all of it! If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today! Each year, the news plays up the increased volatility and weak returns that allegedly occur in September. But is it true?<\/p>\n","protected":false},"author":3,"featured_media":8874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71],"tags":[],"class_list":["post-9824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9824"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9824\/revisions"}],"predecessor-version":[{"id":10319,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9824\/revisions\/10319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
IT\u2019S FREE.\u00a0Download the Just-Released September 2021 Stock Market Outlook<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/picformotm12.png\")
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\nBottom Line for Investors <\/strong><\/p>\n\n\n\n
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This report is packed with newly revised predictions that can help you base your next investment move on hard data. For example, you’ll discover Zacks\u2019 view on:<\/p>\n\n\n\n
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