Turning cash into opportunity

A SWAN dive is graceful and a good metaphor for the behaviour of the US market in September. Although the fall was expected, it wasn't as dramatic as in past Septembers.

For some, that remains a continued cause for concern as they wait on the sidelines for a more dramatic fall often associated with October. For others, it's a complacent approach to the market activity as the September to October period in 2020 was also very subdued.

There are however, some important differences between the subdued activity in 2020 and the current September dip. These differences suggest more caution is required and they also point the way to a potential loss of bullish momentum.