LANSING, Mich. (WLNS) — August and September are historically poor months for the stock market, financial experts say — a trend seemingly exemplified by the bad week stocks had last week.
The Dow Jones industrial average plummeted more than 530 points on Friday, the Associated Press reports, and the NASDAQ closed more than 171 points down. The Standard and Poor’s 500 index lost 5.8 percent last week. Crude oil was trading below $40 per barrel on Friday for the first time since 2009, according CNBC.
Though the numbers aren’t good, experts say not to panic.
“The world’s not ending. It’s probably a 90-day at the most problem and everything’s going to get better,” Ted Feight, a certified financial planner with Creative Financial Design, said. “Don’t worry about making any major changes right now. When you make changes in a period of time like this, they’re usually wrong.”
Feight told WOOD TV8’s Lansing sister station WLNS that a falling trend is typical for the stock market this time of year.
“September is the worst month of the year in the stock market, historically. August is close behind,” he said. “The stores will not do well in the next couple months — other than the back to school — because people don’t feel like they’ve got money to spend.”
He placed some of the blame for what happened Friday on the presidential election, saying the market typically gets “confused” during the third year of a presidential cycle “because you have so many people running for president.”
He said the Stock Trader’s Almanac shows improvement is common in October. Historical trends show there will likely be a 30 to 50 percent gain between the end of October and the November 2016 presidential election.
But he also anticipated a recession in 2017 or 2018, saying the economy was due for one.
“The last recession was in 2008, so that means at some point we’re going to have a recession,” Feight said. “Usually, our indicators have always given us a 12-month warning.”
This article originally appeared on WLNS.com.