Investing involves risk. Depending on the types of investments, there may be varying degrees of risk.
Investors should be prepared to bear loss, including total loss of principal.
Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
So after an impressive rally so far this year, stocks have slowed the past week or so. Is there anything you’re watching to see what comes next?
David Nelson:
Certainly, the rally’s taken I think a lot of folks by surprise and things are, generally speaking, looking pretty good right now. But like always, we’re always trying to find as far as the potential issues, as far as down the road, that could be a problem for folks. The tools that we use basically are always trying to, again, size things up from a risk reward perspective. And I brought along a chart today that’s going to focus on one particular area that is kind of interesting, I think for many people when we bring this up, it’s seasonality. And when we look at the data as far as the various times of the year, month by month, what we find is that there’s oftentimes patterns that you could potentially exploit. Doesn’t work all the time. This is just one variable as far as in the decision-making tree. But what we see here is 50 years of data that’s looking month by month to try to decipher as far as the time of the year that maybe is more conducive, as far as to investing in stocks and things of that nature.
And what we find is that November is the best. And what we also know is that August, September is a pretty rough time, which is where we find ourself today.
Brandy Auterson-Hurst:
All right, so how should viewers be thinking about this when it comes to their investments?
David Nelson:
Well, seasonality, again, is one item. But again, just two quick, simple ideas that if you’re adding money as far as to your investments, maybe that August, September timeline might be very, very appealing. And if you’re taking money out, you might want to be ahead of that. In other words, July, August before things start pulling back. Doesn’t always work, but most of the time it will.
Brandy Auterson-Hurst:
All right, some good advice there. Thanks David for joining us.
David Nelson:
Thank you.