The Ghost Month

One common phenomenon in which superstition affects business judgments would be during the "Ghost Month." It stems from a popular Chinese belief that during the month of August (7th month of the Lunar Calendar), the Gates of Hell open allowing spirits to roam the earth. People avoid making major decisions during this month for fear of inciting bad luck. Regional stock markets, especially those with predominantly Chinese investors, usually weaken and experience relatively lower volume. 
 
Usually it starts from August until September. August is also the month where the second quarter earnings of companies are released. With that, you can decide whether to buy more, hold or sell a portion of your stock. This is a watch-out month and better be cash ready.
 
Tip: For those who are into long-term, I would suggest to wait for this time before adding to your shares rather than buying every month. Depending on the prices, this may not only help you save on fees but also, it will not have that much impact on your average price.
    
Bottomline
 
A change in perspective can be a key to securing your financial well-being. Warren Buffet advises that one should “be fearful when others are greedy and greedy when others are fearful”. Since prices of both the bond & stock markets tend to go down this time of the year, it should be a good opportunity to enter the market at a lower cost.  You can take advantage of this opportunity that others don’t recognize because of irrational fear. Some investors may be holding back since it is “The Ghost Month"; however, you might want to look at it from with a different view, a more opportunistic rather than a fearful perspective of the market.
 
 
 

Comments

Popular posts from this blog

My First Investing/Trading Books

Centrelink: Benefits and How To Claim

Will I Continue Paying My SSS or Not?

Book Depository