Is it common for people to cash out of the market on the last day of the month?

[bluestateguy]

Today we had positive trend news on unemployment claims, GDP and manufacturing, yet the Dow Jones is currently down 74 points. I can't help but think that this is a cash out day for many people.

[Duer 157099]

1. I think the "conventional wisdom" is that

what is good for Main Street is bad for Wall Street.

Wall Street LOVES when people suffer. Wall Street as an institution and Wall Street as the people who support it.

Bastards. Unpatriotic bastards.

[truedelphi]

2. Especially if the last day of the month is Sept 30th.

The Big Fails usually happen in October.

[Andy823]

3. Profit time!

This has been a good month on Wall street, and those with the big bucks know when to cash in and take profits. It happens all the time. Market goes down, those with the bucks buy up cheap stocks. Market goes up and when it gets to a point those with the big investments can make a bundle, they sell causing the markets to go down again. When the stocks get low enough, they buy them up, and the process starts all over! It's how the rich get richer!

[TexasObserver]

4. At the end of the quarter, it's common for some to take their profits.

Profit taking is common on the last day of a month, and on the last day of a quarter. Both are in effect today, so the answer to your question is: Yes, it is common for some investors to nail down their quarterly profit by selling. Most will get back into the market Monday.

Most investors are in for the long haul, and don't jump into and out of stocks like that.

[HopeHoops]

5. Quiet - I'm busy selling all of my stock.

[ThomWV]

6. The market is up a good bit and the Bush Capital Gains cuts end January 1

so figure it out.

[Paulie]

7. Buy on rumor, sell on news.

Thats why trying to time the market just makes you unhappy. Invest, don't gamble. :)

[ProgressiveEconomist]

8. Also, there's "window dressing". where fund managers try to make themselves look smarter

than they actually were this quarter. (See, for example http://www.investopedia.com/terms/w/windowdressing.asp )

Many funds must report their holdings as of the end of each quarter. Thus. during the last few days of the qurarter, they tend to unload many stocks with big losses for the quarter, and move into stocks that had big gains. Of course, such a strategy may not do much for their actual numerical performance for the quarter.