The Weekly ROAR: Beware the IDEAS of March, a month known for famous last words
This is the time of year when upsets occur. And not only in the upcoming NCAA tournament.
The Ides of March is best known for its connection to the death of Julius Caesar in 44 BC. But it has lasted in popular culture this long, as a metaphor for caution and forewarning about sudden misfortune.
Since I’m all about risk management, and filling the wide gap that exists between the ubiquitous Wall Street “happy talk” and the reality of market markets, referencing it here is a chance not to be passed up. In today’s issue, I’m going to explore the history of March in the stock market.
If you ask investors what the cruelest month is, those who went through 1987 and 2008 will instantly say “October.” September is statistically the worst month. But March should not be dismissed. It is a time when a lot of nasty stuff starts to go down. Literally.
I’ll explain what I see, and what I’m doing about it, below. Of note: there are 2 S&P 500 sectors which to me, hold the keys to the castle here. I name names, and explain why, below.