Beware of the Ides of August

Beware of the Ides of August

I hope you are enjoying your summer, even though it has been a very hot one for many of you. It actually have been very nice in South Florida (79-90F/26-32c), then again I like it hot.

Stock Markets update:

As I mentioned, here come August. For the past few years, investors have seen their August investments take a hit – Reason?  The simple answer is Fear (False ExpectationsAppearing Real)! But if you dig just a little bit deeper you would see that it is really people trying to time the market.

Why August you ask? Well, October used to be the month people hate, so they started to plan ahead and sold off in September, and for quite awhile September was the very bad month — so guess what happened?  Yes you are right it progressed to August.  And I am 100% sure after a few more bad years of August it will be July.

This reminds me of an old joke by Mark Twain, the comic genius when he was asked which is the worst month for stock and he said, “October, November, December, January, February, March, April, June, July, August and September.”

What he was trying to say his that any month can be bad and no one should be foolish enough to try and invest month by month. One needs to have a very long-term view for the stock market. And any money that one needs in the next 12- 36 months should not be in the markets.

Rethink and have smarter and safer prospective of a down market: 

A down market is very good for you if you own good quality dividend-paying stocks; if you were at a minimums and you’re are always reinserting your dividends quarterly at a lower price in such companies as AT&T, (T) BPplc (BP), Xcel (XEL), Kraft Food (KRFT), General Electric(GE) , MasterCard (MA), Pfizer(PFE), 3M company (MMM), Norfolk Southern Corp (NSC), Dow Chemical (DOW), Genuine Parts (GPC), Intel Corp (INTC), CME Group (CME), Realty Income Corp. (O) and Coca Cola (KO) etc.

Just think if you do not pay your light bill, Xcel or ComED will shut off your power. Hundreds of thousands of people put BP gas in their car every day, almost every household in America and around the world buy a Kraft Food product every second ( I have yet to see a kid who does not like “Mac & Cheese”), people will be drinking Diet Coke for the next 2000 years. I keep repeating this, but if your grandparents had bought just on 1 (just one) share of Coca Cola when they start paying dividends, it would be now worth $10.8 Million today August 20,2013  (see link below)

Thanks for your time and attention and let talk soon.

Love Always,


Sherwin P. Brown


Sherwin Brown

About Sherwin Brown

Sherwin has been an entrepreneur since he was twelve years old. He currently teaches, writes, and speaks to people about how to improve and safeguard all aspects of their financial portfolios.