Those summer vacations have traditionally resulted in relatively light trading volume and heavy volatility in the markets in the summer. Then as the traders return with the end of summer, the volume starts to increase and the volatility generally subsides. For all the experienced investors who stuck around and survived the summer, the stability in the markets that comes in the fall is often cheered quite loudly.
Today I think those traditions are under assault as the digital world expands to almost every square inch of the planet. Getting away from it all is getting harder and harder to do without simply turning every electronic appliance off completely. And no one is willing to do that for very long.
So relax and enjoy this first day of September. It's Labor Day here in America. It's the quiet before the storm. September is the beginning of the final stretch of the year. It's the beginning of the last third of the year. It's one of only four months that just seem to be littered with Ex-Dividend dates that will produce some pretty strong head winds for your accounts. They'll make it difficult for your accounts to increase as your stocks are falling at the rate of your dividends. It's a month to get serious about being productive in the markets.
Fortunately for most of us and our trading accounts, those companies going ExDividend this month will be distributing some very nice dividends next month.
Bring on October!