August: a month of surprises

August is one of those months that feels like summer is both here and almost over. Families squeeze in one last vacation, kids start getting ready for school, and football season is just around the corner.

For me, this August is a little more significant than usual. Next week, I'll be taking my last vacation of the summer AND officially becoming a year older. Apparently, birthdays have a way of sneaking up on you... much like market volatility.

And that's where August gets interesting for investors.

Why Does August Matter for the Stock Market?

Historically, August has developed a reputation for surprising investors. Over the past 35 years, there have been seven major "black swan" events in August: unexpected events that caused significant market disruption.

Not every August surprise has been catastrophic, but they've all had one thing in common: they weren't on anyone's calendar.

That's an important reminder for investors. The stock market doesn't take a summer vacation.

Should You Expect More Market Volatility in the Fall?

As summer winds down, investors often begin preparing for a period of potentially higher market volatility. September and October have historically developed reputations for market swings, and this year brings another potential source of uncertainty: the November elections.

Add in interest rate decisions, inflation, economic data, geopolitical tensions, and other headlines, and there will be plenty for investors to worry about.

But here's the important part:

Uncertainty isn't a reason to abandon a financial plan. It's one of the reasons you have a financial plan in the first place.

How Should Investors Prepare for Market Volatility?

There's an old saying: "Hope for the best, prepare for the worst."

That's a pretty good philosophy for investing.

When we developed your investment strategy, we didn't assume markets would always go up. We didn't assume every headline would be positive or that there would never be periods of uncertainty.

Instead, we built your portfolio around your goals, time horizon, and risk tolerance.

That means your strategy is designed to account for both the good times and the challenging ones.

If the market continues climbing, you're positioned to participate.

If August (or September, October, or November) brings another surprise, you're prepared for that possibility, too.

So enjoy these final weeks of summer. Take the vacation. Go to the beach (our family's favorite is Cape May, NJ.) Fire up the grill. Enjoy a ballgame or two (go Yankees!)

I'll be doing the same, and celebrating another trip around the sun while I'm at it.

The markets will still be here when we get back.

And if the headlines get noisy, remember: a surprising day in the market doesn't necessarily mean your long-term strategy needs to change.