Financial encyclopedia

During the "September curse" period, investors often turned to safe-haven assets to counter market fluctuations, and gold was one of the most popular choices. As a traditional hedging tool, gold usually attracts a large amount of capital inflows when market uncertainty and risks increase.

What is the September curse?

The "September Effect" refers to the fact that global stock markets generally perform poorly in September and often fall. According to the stock market data of the past decades, the average return rate of the Standard & Poor's 500 index in September is usually lower than that in other months of the year, and even the probability of losses is higher. The "September curse" is not an absolute law, but statistics show that the stock market in September has always fluctuated greatly.

The origin of the September curse:

There is no single definite reason behind it, and the market has put forward several possible explanations:

Seasonal factors: Many large institutional investors will rebalance their portfolios at the end of September, which usually leads to an increase in the selling pressure of stocks, which in turn depresses the stock market.

Market sentiment: Historical data shows that investors' expectations for September are generally conservative, and this negative sentiment may make the stock market more vulnerable to pressure.

Summer effect: After the summer, the market activity increased, and investors began to re-examine economic data and corporate performance, which may bring adjustment pressure.

When the "September curse" came, the stock market volatility increased, so it is very important to choose the right investment products to protect assets or find opportunities. Investors can use gold to hedge risks and even seize market opportunities during the low tide of the stock market. In addition, bonds, defensive stocks and reverse ETFs also provide good choices. The most important thing is to make flexible allocation according to your own risk tolerance, so as to maintain a sound investment strategy in the market fluctuation in September.