The myth
In 2024, the Ghost Month or the Hungry Ghost Festival runs from August 4 to September 2. During this period, which happens at differing dates yearly, many believe that ghosts and spirits roam the Earth and bring bad luck across different areas of life, including finances.
Some people may focus on protecting their money during this month and steer clear of making new investments until it’s over.
The reality
People who observe the Ghost Month typically delay big or costly moves like opening a business or investing until after the month has passed.
Even non-superstitious investors may be wary of investing during the month if they expect a slowdown in financial markets. They might exercise caution thinking others will do the same, turning the belief into a self-fulfilling prophecy.
It can be hard to find solid evidence on the impact of this tradition on economic activity. However, an investment’s past performance can give you hints on how it fared during previous Ghost Months.
Historical data may help you identify whether there is a strong correlation between the month and an investment’s returns.
If a price drop does happen, it can be an opportunity for you to buy low. A price decline might be your chance to acquire assets you’ve been eyeing for a while, like shares of your favorite stocks.
When buying the dip, remember to make informed decisions that align with your strategy, goals, and the type of investor you are.
Keep in mind that different factors drive the ups and downs of financial markets. Downturns during this time might not be as easily explained as the impact of the Ghost Month alone.
It’s also important to check an investment or company’s fundamentals to know if it’s poised for long-term growth and if it’s highly likely that any price drop is temporary.
Verdict: It depends.
Observing tradition or cultural practices when handling your money isn’t a bad thing. It may bring you peace of mind and allow you to manage your finances without fear.
If you’re not superstitious and simply want to avoid losses, be sure to make decisions that’re driven by research instead of mere assumptions. You should also carefully consider your strategy and unique situation.
