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With the stock market off to a poor start to September after the wild swings in the market last month, it might not seem like the best time to invest.  However, there are always opportunities to make money in the stock market, and I hope to lead you towards them by offering some suggestions based on my experience and the recommendations of others.

Historically, September is the worst month for the stock market, averaging a loss of almost 1% in the month over the last 40 years, so one easy way to make money could be to short the entire market using an ETF for the S&P 500, Russell 2000, or another broad index.  It’s simple, would be profitable based on historical data, and offers protection against the weakening economy.

On the more positive side, you could look for stocks or sectors that historically perform well in September.  Since the market is usually down for the month, there aren’t many options here, but the best performing sectors in this month are utilities and consumer staples, so a high yielding stock in one of these sectors or an ETF covering the entire sector could be a good choice.

Another option is to look forward to what performs well in the fourth quarter of the year and buy it on dips in the market so you are in at a good price and ready to profit in the future.  The best performing sectors in the last quarter of the year are the materials and energy sectors, so getting into them when the opportunity presents itself could be a good decision.

Finally, if you don’t feel comfortable making your own stock picks but still want to invest, you can follow suggestions from professional investors like Timothy Sykes, and buy their best stock picks.

Investing in the stock market is a path to long term wealth, and knowing when you should buy and when you should sell can add thousands to your portfolio over time.  As always, invest carefully and wisely, and only with money that you could afford to lose if the worst happens.

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