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FAs Say September Could Be More Volatile Than Usual

September 6, 2016

Market volatility is usually particularly high in September and October but this month could be especially turbulent, advisors tell InvestmentNews.

The combination of a potential interest rate hike, growing geopolitical instability, stalling economic growth worldwide and the upcoming debates between presidential hopefuls right here at home could make this month “more interesting than usual,” the publication writes.

Tim Holsworth, president of AHP Financial Services, tells the publication that he’s expecting five times the normal call volume following Labor Day.

Most advisors say they’re strapping in for volatility and many are rebalancing their clients’ portfolios, according to InvestmentNews.

Ed Butowsky, managing partner at Chapwood Capital Investment Management, isn’t going to urge clients to run to cash but he’s warning anyone over-allocated to equities to get out, saying equities are already overvalued and the continuous earnings revisions will make them even more so, according to the publication.

Meanwhile, Leon LaBrecque, managing partner and chief executive officer at LJPR Financial Advisors, isn’t worried about the rate hike but believes the price of oil could cause major turmoil, InvestmentNews writes. He tells the publication that he’s not just moving from stocks to bonds – both of which are at their highs – but rebalancing inside asset classes.

Blair duQuesnay, chief investment officer and principal at ThirtyNorth Investments, tells InvestmentNews she has already rebalanced her clients’ portfolios, much to their relief. And Mark Reitz, owner of Reitz Capital Advisors, says he’s still a strong believer in the domestic economy, but now is the time to rebalance portfolios and reduce risk, according to the publication.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.