"Who would have thought that September would be such a good month for stocks? It's typically the nastiest month of the year for market returns, but things were different this year. Before you look to buy stocks while breathing a sigh of relief now that September has ended, it's the month of October that also tends to be not such a great year for markets."
"With some brilliant investors, such as Leon Cooperman and Jeremy Grantham, raising concerns about the longevity of the current market rally, it's natural to want to be a net seller of stocks now that the fourth quarter has arrived. Whether we're in the "latter innings," somewhere in the middle, or closer to the start, I think it's just a good idea to be ready to play some defense, well ahead of time."
September produced an unusually strong month for stocks despite historically poor seasonal returns, but October often marks renewed weakness. Prominent investors have expressed concern about the rally's longevity, prompting a bias toward selling and defensive positioning ahead of the fourth quarter. Safer, lower-beta dividend stocks can provide protection against an expected volatility spike. The U.S. government shutdown produced early ripples in market activity, increasing the appeal of defensive names. General Mills is highlighted as a defensive candidate, trading well below prior highs amid multi-year weakness, with management expressing confidence about turning performance around.
Read at 24/7 Wall St.
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