Well everyone, the last “official” week of Summer has come and gone, but someone should tell the weather! I hope everyone had a fun and safe Labor Day Holiday weekend, along with the return of college football. Love this time of year!
The last blog I wrote (see link below) was in mid-June, and I was expressing some concerns over the potential of an AI/Tech bubble brewing and specifically the meteoric rise and exuberance in SpaceX stock. My, how things changed, and not very long after that post! SpaceX stock went on to fall 41% from that date (with some recovery since), and the bubbly parts of the “AI Trade” (semiconductor hardware/memory specifically) went through a brutal sell-off of similar size (40%+). Meanwhile, the overall markets performed pretty well during that same stretch, so you may not have even noticed the carnage taking place underneath the surface. Overall, this was a very healthy development and a reminder of why diversification is so important in portfolio management, and a reminder to NOT chase the hottest trends in the market.
Justin’s Market Musings | AI Bubbles, SpaceX and More! I June 18, 2026
This positive development should also push back all of the bubble talk for another while. I’m sure it’ll resurface before all is said and done, but for now, just ignore that noise. That being said, we are definitely coming off of a very good August for markets. And, we are going to soon be entering a very strong period for markets (4th quarter, particularly in mid-term years), BUT September is historically the weakest month of the year, and is often known for some economic/geopolitical surprises. I’d expect nothing different this year, so be expecting it. No, we aren’t going to try to time a 4-5 week historically weak period because that’s a foolish endeavor (remember, I was fairly cautious for 2026 overall back in January). Normal market volatility (even though it can be scary) is just the price we have to pay for long-term performance, and with the best quarter of the year historically right on September’s heels, we would still expect a solid finish to 2026.
So, go out and enjoy a great time of year (hopefully some cooler days will be coming soon), and try to ignore the noise and volatility that we may certainly get in September. If things get too silly, I’ll definitely get my thoughts out ASAP.
Until next time….GO DAWGS!!!!!
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