September is historically a terrible, horrible, no good, very bad month for stocks – and Tuesday certainly lived up to the reputation.

Over the past roughly 100 years, stocks have averaged a 1.2% drop in September, making it the worst month for stocks by a wide margin. The past five years have been especially bad for September trading. Since 2019, stocks have averaged a 4.2% drop in the month. And Tuesday was, quite simply, awful. The S&P 500 dropped more than 2% in one of its worst days of the year.

Ouch!

So… September’s a wash, right? Time to sell and come back in October?

Nope. It’s time to buck the consensus and buy stocks in September.

Why?

Because a unique event set to take place in about two weeks could make September the best – not worst – month of the year for investors.

Take Advantage of Recession Worries

Right now, most people are worried about a recession. Those fears make sense. Unemployment rates are ticking higher. Job openings are moving lower. Consumer spending is slowing while consumer confidence is weak. If all these trends continue, the economy could very well plunge into a recession.

But those trends will likely start to reverse course in about two weeks – because a very specific, very powerful, and very rare economic dynamic is set to emerge. 

This mighty dynamic has occurred three times before in the past 30 years. Every time it has, it strengthened the economy and sent stocks soaring higher – even if they were dropping beforehand.

For example, in 1998, the economy was weakening, and stocks were falling throughout the late summer and into the fall. In fact, the S&P 500 dove nearly 20% that summer.

Then, in September 1998, this rare economic dynamic emerged. And from October 1998 to July 1999, the stock market soared almost 50%!

We think a similar dynamic is set to emerge in about two weeks. When it does emerge, we expect it to result in the same outcome it produced in 1998 – a major stock market rally.

Which Stocks Could Win?

The U.S. economy appears well-positioned to achieve a soft landing in late 2024. From there, the economy should regain its strength in 2025 as we move past the U.S. presidential election (elections always cause short-term political angst) and the AI investment boom continues with vigor. Stocks will charge higher. AI stocks will remain the biggest winners. 

In our view, the go-forward path for markets is clear and positive. After this event, the economy will grow stronger. Earnings will push higher, and so will stocks… 

Especially AI stocks. 

Indeed, for all the talk out there of an “AI Bubble,” the data actually suggests that we are in the early innings of a continued AI Boom. 

For example, electronic design firm Keysight Technologies (KEYS) said that businesses are re-architecting data centers for AI, leading data center operators to upgrade to high data-rate networking products in bulk – massively boosting Keysight’s business. On a conference call with analysts, the company’s CEO said that it’s becoming quite clear that AI will be a transformational technology. 

Meanwhile, integrated circuit maker Analog Digital (ADI) said that it is observing customers’ huge efforts to modernize and digitize the electrical grid in response to the massive AI infrastructure buildout going on right now. 

Telecom infrastructure firm Dycom Industries (DY) noted that demand for low-latency AI data center connectivity solutions is growing rapidly. Data center operator GDS Holdings (GDS) provided a very bullish read on the Asian data center market this morning, too. 

And tech solutions provider Unisys (UIS) reported a 25% increase in new business signings in the first half of 2024, primarily driven by new AI services. Its large language models are helping media firms create dynamic ads for targeted audiences and allowing restaurants to collect data on payment channels to improve restaurant operations. 

The evidence here is clear to us. The AI Boom is yielding real and significant financial benefits across the global economy. 

So, don’t just buy stocks. Buy top AI stocks – that’s where the growth is happening right now. 

The Final Word

So, what exactly is this dynamic that could push stocks (especially AI stocks) higher? How does it emerge? Why is it so rare, and how does it drive stocks higher?

We plan to answer all those questions and more in an emergency briefing this coming Wednesday at 8 p.m. ET, aimed to help you prepare for this rare economic dynamic.

A little before 8 p.m. ET, I’ll send you an email with the subject line [The Great Tech Reversal of 2024]: Your Access Link. 

To join me, just click the link in the email.

It’s crucial you join me, as this major market event is scheduled for the following week.

I believe it will send a group of stocks soaring higher than anyone can imagine.

How do I know? Because this same dynamic emerged in 1995, 1998, and 2019.

In 100% of those cases, it triggered a massive boom.

This event will only happen once. If you miss this chance, you won’t get another.

Most importantly, at this briefing, we plan to unveil a game plan to help you potentially profit from this rare economic dynamic.

So… don’t run away from the current market volatility because September is usually a bad month for stocks.

Rather, embrace it. Attend our special briefing. And learn how to potentially turn this volatility into profits.

Reserve your seat to that briefing now.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.