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What I've Been Reading | September 2021

Written by Ryan Hitchcock

Test Question:

Which month of the year historically is the worst performer for stocks?  

  •  September  
  •  September  
  •  September   
  • All of the above

*see below for answer & context


Nasdaq: Why Stocks Could Fall 50% - seekingalpha.com

Bad News For Retirees: Inflation Is Soaring - seekingalpha.com

My quick take:    
I'm just going to get on my soap-box for a moment and talk about click-bait:  The two articles I've linked above are pushing the limits on what I'd call click-bait -- titles that are only for attention grabbing purposes and to garner clicks.  More clicks can mean more advertising dollars for a website.  The content of titles like these usually are an after thought as people don't get too far past the titles, in a lot of cases.

In my experience helping people with their financial lives, I've seen how constant market news cycles or constant exposure to click-bait titles online can actually cause great anxiety and detract people from their financial goals.  This is a big reason why I do these monthly eNewsletters.  I try to try to filter the vast world of Financial Planning and Investing internet articles down to what I believe is actually important and relevant for my readers.  

*stepping off soap-box


3 Ways A Woman Can Put The “I” Back In Retirement - Forbes.com

8 Financial Do's and Don'ts for the 7-Figure Retirement - morningstar.com

My quick take:
The first article discusses the societal pressures put on the modern women and specifically women newly entering retirement now.  These women grew up in an era where they had to fight for the societal right to choose a path outside of traditional roles, and still take care of everyone around them-- often times, resulting in putting other's needs before their own...including their financial needs.  This article is co-written by a prominent female Financial Advisor and provides suggestions on how keep their financial needs in the equation and not give up on the care they give to those around them.

The second article has a plethora of information such as:  when to retire, keeping an eye on taxable income, social security, safe withdrawal rates, etc.  Book mark it and read it when you have a more than 5 minutes.  

Financial Planning

What Is a First-Time Homebuyer? - thebalance.com

My quick take:  
The answer to that question is not as simple as you may have thought, check it out.

Self Employed?

How a Client's Solo 401(k) Can Become a Mega Backdoor Roth IRA - thinkadvisor.com

My quick take:  
Solo (K)'s  are for sole proprietors and their spouses, but can be useful to people who have side jobs that may be profitable as well.  Mega Backdoor Roth's are usually for the big savers of the world that really desire Roth monies for the their future financial goals.  

I have done a podcast episode on this topic if you want to explore it more.

However, and this is a big however!  Currently there is a push to repeal these Backdoor Roth's of all kinds in the current $3.5 trillion budget plan.  eek.

My Upcoming Webinars

Website: rhitch.com/resources

Keep an eye on my website for upcoming webinars.  

Up next: Creating a College Savings Plan
When: Tuesday Oct. 19 & Friday Oct 22 - NOON
Register now at my website above

*Good for parents and grandparents!  

One more click bait article title for good measure

Your Kid Won’t Be Tiger Woods.’ How Advisors Can Break the News to Clients - Barrons.com

My quick take
*Getting back on my soap-box--
This article is geared more towards advisors on how to interact with clients; however, it's still click-bait and the subject matter is brutal too.

You may need a log-in to actually read the article. In short the title obviously catches your attention and reels you in.  No surprise the content of the article doesn't even mention Tiger Woods and continues on a random path.  

Test Question Answer 

  • All of the above


There is a great chart in the article I have linked here.  It shows the S&P 500 historical returns by month from 1950, 2001 and 2011 showing September is the worst month of the year and the only one that has produced negative overall returns in each of the three time periods.

Last year, September saw a 10% correction in the face of the huge bull run coming off the COVID lows in March of 2020.

You may be wondering what causes the September Effect?  Most agree that you can't point to one particular indicator and thus call it a market anomaly.  

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