MSNBC Headline - "September is actually worst month for stocks" - Self-Fulfilling Prophresy?

[TomCADem]

It is interesting that MSNBC would lead with a technical analysis tip. However, given that CNBC had Jim Cramer telling everyone to sell their stocks and go into cash in February of this year near the bottom of the market, why not feature some technical analysis on the front page? All I can say is that I sure do miss actual journalism. Of course, if you want to go the technical analysis route, you could also rely on the fact that the stock market has done better under Democratic presidents than it has under Republican presidents.

http://www.msnbc.msn.com/id/32558734/ns/business-personal_finance/

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DES MOINES, Iowa - If someone asked you to name the worst month for stock market performance you might say October. After all, that's the month when Black Monday and Black Tuesday occurred, marking the crashes of 1987 and 1929. Or perhaps you'd think May, in keeping with the old adage "sell in May and go away." You might be surprised to know September is historically the worst month for the stock market.

Last year the Dow Jones Industrial Average fell 6 percent.

That drop was unusual, but historically the index has fallen an average 1.4 percent in September since 1929.

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[politicat]

1. September is when tuition bills come in.

Even if only 10% of investors use their stocks to pay off the university (or the private school), it adds up.

[OHdem10]

2. Bloomberg Business News was chit-chatting about how Sept is worst

month for stocks. People might think Oct. but Sept is worst.

Interesting Coincidence???

[TomCADem]

3. Maybe They're Holding Put Options Betting On A Stock Drop Aided By Media Market Manipulation?

I guess market manipulation is legal if you do it out in the open. Just buy a bunch of put options, then start hyping that the market falls in September. Of course, if you did a pump and dump anonymously on a message board that would be illegal, but get the major media to do the same thing at the same time, and its okay. I jsut thought it was odd for MSNBC to have a stock tip on their front page.

"A Put option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined 'strike price' before the option reaches its expiration date. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option."