What happens to summer stock markets when most of the investment “pros” are lounging on the beach or sailing their yachts? What we have are small movements with very low trading volume, leading you to believe that all things are well. However, appearances can be deceiving. The markets never rest and undercurrents may be building. While complacency is rampant, forces may be quietly preparing to mount an assault.
The biggest recent stock market crashes happened right after the “summer doldrums.” It seems that when the “pros” come back from their vacations, some kind of reality hits, and “all hell breaks loose.” A change in attitude – maybe. A change in viewpoint – likely. A change in expectations – definitely. No matter what the changes may be, you must be attentive and be prepared. Remember, complacency should not be part of your investment plan.
Midweek Stock Market Report