#markets #investments #stocks #investors #indices #sectors #outlook #september

September is traditionally the worst month for stocks, and we are experiencing difficult times in the world economy and the national economy. With inflation that continues to grow and the central bank seeking to curb it by increasing the cost of money.

If the Central Bank's moves prove misguided for whatever reason, we are in danger of prolonging these tough times, and even if they are successful, other factors in the economy may work against us to maintain this gloomy outlook.

In the same way, difficult times can be times of opportunity, if you are well focused and excellently prepared, you can not only make a profit but prosper significantly. It's in your hands. But a little help in the form of information can help you a lot without a doubt.

The S&P 500 index began the month of September 2022 with a modest appreciation of +0.30%, however on the second day, Friday, September 2, it closed with a loss of -1.07%.

For other relevant indicators we have the following data at the close of this Friday:

•     NASDAQ  -1.31%
•     Dow          -1.07%

Only 1 sector of the S&P closed positive this Friday, here we have the panorama:

And the detail by sector:

What's going on?

•     The rise in reference rates makes it less attractive to invest in shares and their derivatives, which has been causing sales that have dragged down the share price and the market in general.
•     Geopolitical tensions in Ukraine, Europe, Taiwan and Latin America mean that companies' prospects are less optimistic in terms of earnings and growth, which is also weighing on the downward trend in markets.
•     The United States is going through a difficult time for its economy, although this Friday it reports the creation of 315,000 new jobs, above the 300,000 estimated by consensus, and unemployment rose a bit to stand at 3.7%. This leads financial analysts to favor that the probability of another 75-point hike at the next Fed meeting is higher. Again, this makes stocks less attractive.

My outlook for September 2022

•     It is definitely not a good time, or a good month, to be thinking about big hits with growth stocks and momentum or trend-following strategies. There are other strategies that are more suitable for this type of environment.
•     Being very careful with the management of my portfolio, and very demanding for the analysis before opening a new position. When in doubt, no question, cash can be a good idea.
•     Lean on technical analysis and its different tools and techniques, depending on your strategy, to minimize risk. Still, if you're not sure what you're doing, it's best not to trade. Be patient until you find the right settings for your trading style.
•     Trading down, bearish, or trading the ETF bear, has its own complication, don't think it's even remotely similar to trading up, bullish. If you decide to do so, be fully prepared before opening any position and have very tight risk control.

Be awesome!