Wealth management is all about doing the best you can with
what you have. You try to earn as much as possible, to spend your money wisely,
and to invest where you can. Usually that works out pretty well, but according
to S&P Capital IQ, there are three months out of the year when losing money
just seems to be par for the course.
Those three months, unfortunately, come one right after the
other: August, September, and October. August is when the downward spiral
usually begins, with reports stating that investors lose an average of 4.38% in
this month. It’s likely that people are simply on vacation or relaxing during
this time and thus don’t trade and invest as they usually do.
In September and October, things usually only get worse, a
fact that financial experts blame on the third quarter earnings reporting
requirement and the subsequent trend toward mutual funds rebalancing.
Even though these three months may traditionally be bad
times for investors, not every investor suffers in the late summer and early
fall. Smart investors are those who understand the decline that happens during
these months and who prepare and compensate for it throughout the year. If your
wealth management strategies have failed to take into account these natural
declines, then it may just be time to get some professional, knowledgeable
help.
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