Stock Market Trends – Are Stocks Set To Drop In September?

Stock market trends are a good gauge of what can happen in the future.  There is a fair amount of buzz right now about the market.  September could show a fair fall in the stock market.  Most people do not think it will drop to the 12 year lows we saw in March, but because of the end of the fun in the sun season and the start of the back to work and school season, there may be quite a few noticeable changes.

This week will be critical.  We should be able to see what the rest of the calendar year will present, and possibly set the standard for the new fiscal year.  Dave Hinnenkamp, CEO of KDV Wealth Management, said there has been some “artificial demand created by the stimulus”.  That could mean many people may have had the illusion that things are getting better and had their summer fun, but now it is time to get back to life, and that may bode ill for the market.  We could see a slide of up to 10% or more over the next month.

But not all is negative.  As we have seen before in the past, this week does not always spell disaster.  It is just as likely that instead of the market reacting erratically, it may show small to modest loses and gains.  It may even be more likely that there is barely a large change, unless some large scale event happens.  As it is, on wednesday, Apple will be unveiling a new line of iPod Nano and iPod Touch models.  There should be a good jump in the AAPL stock.

What does this mean to you?  Watch your money.  As always never make rash decisions. The stock market has a funny way of catching you off guard.  This week could prove mediocre or disastrous.  But, as the eternal optimist, I think the week may show stable gains.