The Stock Sleuth

Detecting deep values in turbulent markets

The Hindenburg Omen media effect = buying opportunity

Recency Effect is the bias toward market euphoria or calamity caused by recent market events. It was thus pretty easy to see the Hindenburg Omen as pure nonsense, a media frenzy that provided nothing less than a buying opportunity. This along with all of the dreary predictions for a horrible September, made it pretty obvious that there was an excellent entry point for investors.

The main stream media loves to talk about horrible Septembers. A little homework and insight will yield that September equity performance historically has been a victim of:

-World War I beginning

-World War II beginning


-9 of the 10 worst hurricanes in U.S. history

-The fall of Lehman and market crash of 2008

If you remove these events, how would September rank in equity performance?


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