August is the month when many families take their final summer vacation. It’s also the month when back-to-school preparations start and football season comes into focus. But August has a more unsettling side for investors. It’s a month known for surprises—and not in a good way! As you can see from the accompanying chart, investors have managed through seven exogenous shocks in August in the past 34 years. Some have been worse than others, but you get the idea. August is a month of surprises. |
The good news is that in 2024, stock prices appear to have shaken off the surprise news regarding the Yen carry trade that rattled markets. Investors are focusing on the economy, inflation, and the Fed’s next move with interest rates, which could come as early as next month. When stock prices move quickly, even the most seasoned investor can find it challenging. I remind people to avoid paying too close attention to day-to-day market swings. Instead, stay focused on your goals and remember that volatility is the price we pay for investing. |
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.