While market volatility typically spikes in September and October, advisors have told InvestmentNews that this month could shape up to be especially “turbulent”.
Citing a potential interest rate hike, increasing geopolitical instability, sputtering economic growth, and upcoming debates between US presidential nominees, InvestmentNews has reported that September could be “more interesting than usual”.
AHP Financial Services President Tim Holsworth told the publication that he’s anticipating five times the normal call volume after Labor Day.
Many advisors are also reportedly bracing themselves for volatility, with many rebalancing their clients’ portfolios in preparation.
Ed Butowsky, managing partner at Chapwood Capital Investment Management, stresses that he’s not urging a rush to cash, although he is cautioning investors to avoid over-allocating to equities, citing overvaluations that will only get worse with continuous earnings revisions.
LJPR Financial Advisors CEO Leon LaBrecque, on the other hand, isn’t worried about the September rate hike – the chances of which have dropped significantly on the back of softer-than-expected US jobs data. However, he expects major turmoil from oil prices, telling InvestmentNews that he is not just moving from stocks to bonds, but is also rebalancing inside asset classes.
While ThirtyNorth Investments CIO and Principal Blair duQuesnay has already rebalanced her clients’ portfolios, Mark Reitz of Reitz Capital Advisors says he still strongly believes in the domestic economy, though he acknowledges that now is the time to reduce risk through rebalancing.