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Be Informed

September 4, 2012 – 5:07 pm

It is a well known fact that September is the weakest month of the year for stocks but that does not mean you run from the market. When the public knows a thing is going to happen they tend to take steps to avoid the obvious. Many investors and traders that have expectations that September is going to be a poor month have already taken steps to forestall losses therefore the downside volatility may not be as painful as it could be. Yes, there is likely going to be a correction. The market moves in waves and we are overdue for a downside move, but as an investor you should stay with your long term positions and maybe buy a little insurance against the correction. After September it is time be aggressive because we are rapidly approaching the best time of the year for stocks.

All this carefully planned maneuvering could also be for naught. There is always the unforeseen events like last year’s earthquake in Japan with its huge worldwide impact. A war in the Middle East could explode in an instant, or we could have Greece announce their attentions to leave the EU or for that matter the EU announce their attentions to boot Greece out. Then there are the known events that could disrupt the market. Our Presidential election and the fiscal cliff come to mind.

To be informed is to be armed resulting in an ever ready response to both known and unknown events.

Good Trading
Steve Peasley

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