Bob Graham – Riggs Asset Management Company

Hi, Bob Graham here from Riggs Asset Management Company.

About a week ago, we discussed some of the volatility we were seeing in the markets and how we expected that volatility to begin settling down across the stock market, bond market, and commodity markets.

Over the past week, we’ve actually seen that happen.

Markets have begun to move higher again, bond markets have continued to perform well, and precious metals—particularly gold—have also shown improvement.

Now we’re approaching the end of August, Labor Day is right around the corner, and soon students will be heading back to school. At the same time, we’re entering the heart of an election year cycle, which makes this an interesting period for markets.

So naturally, we begin to look ahead to September.

The September Market Pattern

There’s an old saying on Wall Street:

“When September leaves fall, stocks fall.”

Historically, that pattern has been fairly consistent.

If you look at market data going back to around 1958, September has often been the weakest month of the year for stocks.

During presidential election years, September can sometimes be even more volatile, as investors begin paying closer attention to political developments once the summer ends and attention shifts toward the upcoming election.

How Investors Prepare for Volatile Periods

So the question becomes:

How do you navigate a period like September when volatility is historically more likely?

One way is to look at which asset classes tend to perform better during these periods.

Historically, several areas have performed relatively well during September volatility.

For example:

• Precious metals, particularly gold, often perform well

• Bonds, including U.S. Treasuries, corporate bonds, and municipal bonds, have historically performed strongly

• Energy markets, such as oil, sometimes move higher

• International markets have also tended to perform somewhat better than U.S. equities during this period

Portfolio Positioning

As we approach Labor Day and move into September, it’s important to know that your portfolios are positioned to handle the type of volatility we often see during this time of year.

For example, portfolios currently include:

• High-quality Treasury bonds

• Corporate bonds

• Municipal bonds

• Exposure to gold and other precious metals

These types of assets can help dampen volatility during periods when stock markets may experience short-term turbulence.

At the same time, portfolios are also positioned to take advantage of what we expect may happen after the election.

Historically, markets often follow a pattern during election years:

• Strong performance earlier in the year

• Choppier markets during September and October

• Potential volatility into early November

• Followed by a strong rally into year-end and into the following spring

Because of that pattern, we’re focused not only on protecting portfolios in the near term, but also on positioning them to benefit from potential opportunities once the election uncertainty passes.

Looking Ahead

Overall, we believe portfolios are well positioned for the current environment.

We expect the coming weeks may follow a fairly typical September pattern, with volatility tied to both seasonal trends and the election cycle.

At the same time, we remain focused on the opportunities that may emerge later in the year.

If you have any questions whatsoever, please feel free to reach out to your investment adviser.

If your adviser isn’t available, anyone on the Riggs investment team would be happy to assist you.

Thank you very much, and I hope you have a wonderful Labor Day weekend.