As we head into August, you might notice the financial headlines turning a bit more dramatic. Historically, late summer is known for increased stock market swings—a phenomenon often called the"August Effect." When the markets experience these summer shifts, it is helpful to look at the data rather than the headlines. Understanding why this happens can help you tune out the noise and keep your long-term plan on track. Why the Market Tends to Move in August - Lower Trading Volumes
- Many Wall Street traders and institutional investors take vacations during this month, resulting in fewer active market participants and a lower volume of buyers and sellers. This low volume createsthin markets, meaning even smaller trades can cause much larger price swings than usual.
- A Normal Seasonal Breather
- According to financial research platform Seeking Alpha,historical market data from 1950 to the present shows that the S&P 500 frequently hits its monthly low during the first 10 days of August; andStock Trader’s Almanacnotes that August weakness has often appeared in the first eight or nine trading days. Ultimately, this early-month volatility is a recurring seasonal feature you should expect and plan around, rather than a reason to abandon your disciplined long-term strategy.
- Headline Amplification
- During slow summer news cycles, the financial media frequently overanalyzes minor daily drops, turning routine market movements into dramatic headlines. However, long-term tracking fromLPL Financial Researchreveals that the average intra-year pullback for the S&P 500 is roughly 13.7%, proving that these temporary dips are a completely normal part of the market cycle. Ultimately, sticking closely to your target asset allocation is the best way to prevent reactive, emotional mistakes during these standard seasonal breathers.
Navigating seasonal market turbulence comes down to discipline over reaction. While late-summer swings can create dramatic headlines, remembering that early-August volatility is a well-documented historical pattern allows you to stay focused on the bigger picture.Of course, there are always exceptions to historical patterns, and no seasonal trend should be treated as a guarantee. By keeping your asset allocation aligned with your long-term goals, maintaining steady portfolio management, and letting temporary dips play out, you can confidently filter out short-term noise and stay on track toward your financial future. All investing involves risk including loss of principal. No strategy assures success or protects against loss. Asset allocation does not ensure a profit or protect against a loss. |
- As a follow up to last month's shared LPL's Midyear Outlook,we invite you to watch the replay of the LPL Research's Midyear Outlook webinar🎥: Economic Growth Insights for 2026. The webinar emphasizes opportunities for long-term investors despite ongoing uncertainties, providing a comprehensive overview of the economic situation and its implications for investment strategies.
- With an 🌟Account View login🌟you can securely access your financial information anytime, anywhere, from any device -- and setting up a client login only takes a few minutes! Account View's secure platform provides access to your portfolio status and account-related documents, along with a wide range of convenient self-service features—such as mobile check deposit, ACH transfers, RMD information, beneficiary updates, and balance verification letters. To get started, ourFAQ page offers several insights that may be of assistance. Additionally, our Get to Know Account View 2.0brochure provides step-by-step login instructions and answers to common questions.
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Mid-Year Tax Checkup: Adjusting Withholdings Before Fall Late summer is the ideal window for a mid-year tax review. With seven months of financial activity behind you, checking your year-to-date income and withholdings now leaves plenty of time to make necessary course corrections before December 31. Quick Mid-Year Tax Facts: Prevent Underpayment Penalties: Ensuring your withholding covers at least 90% of your current year’s tax liability (or 100%–110% of last year’s tax) helps avoid unexpected IRS penalties.
Account for Life Changes: Major events this year—like bonuses, job transitions, market gains, or changing dependents—often require updating your Form W-4 or quarterly estimated payments.
Optimize Retirement Contributions:Check if you are on track to max out workplace 401(k) or IRA contribution limits before year-end to lower your overall taxable income.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional |
Guard Your Accounts Against Phone Scams Fraudsters are using advanced technology toimpersonate financial institutions and target retirement savings. Follow these three quick rules to protect your wealth: - Never trust caller ID.Scammers use software to spoof official bank numbers on your screen.
- Hang up on pressure.Real advisors will never demand immediate passwords, PINs, or urgent wire transfers.
- Call back independently.If you suspect an issue, hang up and dial the official number found on your statements.
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What number, when written as a word, has its letters in alphabetical order? ___ Last Month's Riddle:What has keys but opens no locks, has space but no room, and allows you to enter but you can never go outside?
Answer: A computer keyboard. It has keys, a "space" bar, an "enter" key. It is a digital and physical input device, meaning you cannot physically step outside of it. |
