The Ides of March was a festive day dedicated to the god Mars and a military parade was usually held. In modern times, the term Ides of March is best known as the date that Julius Caesar was assassinated in 44 BC. In William Shakespeare's play Julius Caesar, Caesar is warned to "beware the Ides of March."
After many years in this business, I have learned to "beware the Ides of August" as far as the stock market is concerned. Mid-August is a period when major crosscurrents appear and markets become nervous and volatile. It does not happen every year, but I learned to be careful anyway.
This morning the sell-off in Asian stocks was broad-based with financials, industrials and materials providing the biggest drag on the MSCI index of Asia Pacific shares traded outside Japan which was down 2.2 percent and within striking distance of the month's low.
U.S. stock futures dropped more than 1 percent on Monday, dragged down by a slide in Asian shares, on worries that the broad surge in shares had run ahead of the global economic recovery. The European markets are also poised to open lower according to the futures.
Again, beware the Ides of August.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
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