Tags: Hulbert | August | strong | stocks

Hulbert: August Turns Out to Be a Strong Month for Stocks

Thursday, 31 July 2014 01:56 PM

Conventional wisdom has it that August is a weak month for stocks. But that's just a myth, says Mark Hulbert, editor of Hulbert Financial Digest.

He presents the average move by the Dow Jones Industrial Average for each month going back to the Dow's start in 1896.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

"Like almost everyone on Wall Street, I bet you thought that August would be near the bottom of the monthly rankings," Hulbert writes on MarketWatch. "But try telling this to the data."

August places fourth in the table with a 1.13 percent return, behind July (1.46 percent), December (1.43 percent) and April (1.21 percent).

And the August return more than doubles the 0.55 percent average of the other 11 months.

"How did August get its undeserved bad reputation? By focusing on too little history," Hulbert says.

Since the mid-1950s August returns are the third worst in the rankings, behind only June and September.

So you have to decide whether you want to trust in the last 60 years or the 60 years before that. Or you might just want to leave all that history out of your investing decisions.

Meanwhile, some investors are turning cautious on stocks in the wake of their climb to record highs this month.

"People want to take some profit off the table," Nick Skiming, a portfolio manager at Ashburton, told Bloomberg. "Earnings overall have been tracking slightly higher than expected. Next quarter may disappoint .... [In addition,] Argentina may well have an impact on sentiment."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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Conventional wisdom has it that August is a weak month for stocks. But that's just a myth, says Mark Hulbert, editor of Hulbert Financial Digest.
Hulbert, August, strong, stocks
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2014-56-31
Thursday, 31 July 2014 01:56 PM
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