Even the Market Gets Tired in September

If you've felt drained this month, you're not the only one. 

I've heard some version of it from clients, entrepreneurs, and people juggling a day job with something on the side. For a lot of people, summer wasn't much of a break. 

Work kept moving. The business kept moving. Life kept moving. Then September comes around; we're supposed to "lock back in," and suddenly the energy isn't there. 

Interestingly, September has historically been the weakest month of the year, on average, for the S&P 500, a pattern often called the "September Effect". 

The market isn't actually tired, of course. But I think there's something useful in the comparison: Not every slowdown is a problem that needs to be fixed. 

Businesses have seasonality. Revenue has seasonality. Markets have seasonality. And people do too. 

The problem is that entrepreneurs can start treating every slowdown like an emergency. Revenue feels slow? Run another promotion. A few clients don't respond? Maybe demand is disappearing. Feeling tired? Work harder. 

Sometimes action is necessary. Sometimes it isn't. Before you react, look at the numbers. Is revenue actually declining? Are customers leaving? Has demand changed? Is cash flow becoming a problem? Or are you simply tired? Those are different problems. They require different responses. 

Don't create a business problem trying to fix a slowdown that wasn't one. If the numbers say something needs attention, address it. But if the numbers are fine and you're the one running low, address that too. 

Rest isn't the opposite of momentum. Sometimes it's what protects it. 

The market doesn't apologize for September. You don't need to either. 

J&C Briefs | Joachim & Co. 

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