Tough for Equities, August Good for Fixed Income

Most investors are aware that seasonal patterns exist in equities, but they may not be as familiar with the seasonal patterns in fixed income markets. As pointed out in the LPL Research Market Blog on Monday, August 2, stocks have historically been relatively weak in August and September. This temporary increase in equity volatility is tough for equity investors, but can core fixed income investors glean anything from a traditionally volatile period for equity markets? Because of the seasonal patterns in the equity markets, changing investor risk sentiment in August could make core bonds more attractive because they tend to represent a safer option than stocks and a higher yielding alternative than cash. Read Full Article »