Okay, now this is newsworthy. That is if you’re really into statistics. Statistics are everywhere and track everything you might possibly imagine. Statistics make news stories.  Economists and investors have statistics and those that are candlestick gurus believe that previous patterns can dictate theS&P 500 hits August high future based upon natural human tendencies.

Maybe. But investing your hard earned assets based upon previous statistics might provide an historical perspective but that doesn’t take into consideration current conditions and forecasts. Or events completely unexpected.

Forecasting certainly means looking at past patterns and making a prognosis based upon what you’ve learned, but that’s not necessarily statistics but rather learning from experience. Sort of a “don’t ever do that again” approach.  But here’s a milestone for you—The S&P 500 has been making consistently solid gains for weeks now and according to a story on cnbc.com, the S&P had the best month of August in 14 years.  That’s a stat for you, isn’t it? Best August tally since 2000? Does that make you feel confident investing in the stock market?

That depends upon your level of risk and how close you are to your financial goals. If you’re not risk averse should you start pouring money into stocks? After all the markets have been on quite a rally as of late and strength builds upon strength and if you don’t invest now you might be missing out.

Or not.

You need to do your own research and discuss at length financial and legal counsel regarding your investments but statistics and trends in stocks and mutual funds, while providing some comfort and support in an investment decision they are not predictors. In fact, if economic history is infallible predicting future moves, then why are interest rates still hovering near historic lows at the same time equities are setting records? Active investors have their own individual traits and motivations, but the S&P 500 hitting a 14 year high for August should be nothing more than a statistic.