A June Gloom?
In Southern California, the weather is beautiful most of the year. However, there is the annual June Gloom weather pattern that results in cloudy, overcast skies with cool temperatures during the late spring and early summer, most commonly occurring during the month of June.
Similarly, that saying can apply to the financial markets as well – especially during the summer months all the way to Labor Day. These months can be dangerous for investors, because many are away on vacation and, as a result, volatility is higher since liquidity is lower than it otherwise would have been. As a result, stock price fluctuations tend to create a lot of financial pain for those who would attempt to trade stocks.
For this week’s podcast, Jeff Powell and Jeremy Witbeck shine some light through the market’s “June Gloom”.