Market Seasonality, Leaving Politics Out of It, & The Best Investment Advice Ever
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In this week's episode of Money Wise, we kick off with a recap of the market's performance, noting that the Dow Jones Industrial Average fell by 240 points (0.6%), the S&P 500 remained nearly flat with a slight decline of two points, and the NASDAQ was down 31 points (0.2%). Despite the relatively modest changes for the week, the Money Wise guys discuss the dramatic market movement on Monday, which saw the Dow drop as much as 1,200 points in a short period before partially recovering. This sharp decline, the worst since 2022, set the tone for the week and prompted a broader discussion on market seasonality and the long-overdue corrective move that the hosts had been anticipating. The conversation takes a critical turn when the Money Wise guys express frustration with the media's coverage of the market downturn, particularly conservative outlets like Fox News. They argue that the media incorrectly attributed the market's decline to political factors, specifically blaming President Biden and Vice President Harris, when in reality, the sell-off had nothing to do with politics. Instead, the Money Wise guys emphasize that the market's reaction was part of a natural corrective process, unrelated to any fundamental changes in the companies within the broader stock market. They stress the importance of educating investors about the real causes of market movements, rather than stirring up emotions with political rhetoric, and use this week to delve deeper into the actual reasons behind the market's behavior.  Market Seasonality Market seasonality refers to the predictable patterns and trends that occur at certain times of the year, often influenced by historical data, economic cycles, and investor behavior. Currently, market seasonality is at play as we enter a period typically characterized by increased volatility and potential corrections. Historically, the late summer months, particularly August and September, tend to be weaker for the stock market, as investors reassess their portfolios and respond to economic data and earnings reports. This seasonal effect is contributing to the recent market fluctuations and the anticipated corrective move that has been unfolding in recent weeks. Understanding these patterns can help investors navigate the market with greater awareness and preparedness. In the second hour today, the Money Wise guys share The Best Investment Advice Ever. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
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