Sep 3, 2015

Sam Stovall of S & P Capital IQ points out while many investors may think the worst is over, September September is the only month in history in which the S&P 500 fell more frequently than it rose. What's more, in the 11 times that the S&P 500 fell by more than 5 percent in August, it declined in 80 percent of the subsequent Septembers, and fell an average of nearly 4 percent. And why might this month be true to form and true to history? End-of-quarter mutual fund window dressing, a projected 4 percent decline in third quarter S&P 500 operating earnings per share, and the renewed possibility that the Federal Reserve may begin its rate tightening cycle at its upcoming mid-September Federal Open Market Committee meeting. Oh yeah, and China. Steve and Sinclair review Mr. Stovall's insights. In the Q & A, Steve breaks down how to achieve an extra $2,000 a month for life, using 75% less capital, while maintaining access to your money and not disinheriting your heirs. (Invest the other 25% for capital gain, or create an increase in an estate by up to 30% to 50%)