Fed Aggression and Upcoming Midterm Elections Add to September Jitters

September has historically been one of the worst months for stocks, with returns averaging -0.34% for the 30-year period, -0.26% for the 15-year period and -0.92% for the five-year period, according to Bloomberg data. As you can see below, September is the only month when the market was down on average in every time period.

September Has Historically Been a Challenge Month for Stocks

This, coupled with the fact that 2022 has already been a highly volatile year due to scorching inflation, rising interest rates, recessionary fears and a persistent war in Ukraine, means that investors may consider seeking a haven for their wealth. At the moment, cash appears to be king, with the U.S. dollar’s value at a 20-year high.

Loyal readers know I also prefer gold and high-quality gold mining stocks, which I believe should make up no more than 10% of a conservative investor’s portfolio. Investors with a longer time horizon may consider between a 2% and 5% weighting in Bitcoin, which looks attractive now at around $20,000.