August has frequently been a miserable month for stocks, with the Dow Jones Industrial Average (DJIA) averaging a monthly loss of 1.4% over the last 20 years, according to figures provided by Bespoke Investment Group and reported on by CNBC. Further, the stock market could experience a "nasty" market correction in the final quarter of the year, a prominent analyst stated during a separate CNBC interview. (For more, see also: A Big Red Flag Is Pointing to a Stock Correction.)

Potential Correction

Giles Keating, who served as global head of research for Credit Suisse Group AG (CS), told CNBC that while economic fundamentals and earnings are both "OK," "interest rates are not going to end up going up that little bit faster than people think … and that will cause a market correction," he said. "I think a crash is still two years away … but I think a decent correction is two months away." 

Buy and Hold

Investors can get through August declines simply holding their stocks during the month, Bespoke Investment Group co-founder Paul Hickey emphasized in a note to clients. 

"For a long-term investor, the fact that August and September have historically been bearish is no reason to liquidate and wait it out, because eventually we'll move past these two months and then the final three months of the year turn into extremely bullish months," wrote Hickey according to the CNBC report. 

Brace Yourself

Investors who want to follow this buy-and-hold strategy might want to brace themselves for volatility over the next few months, according to Business Insider. One major sign that a correction is on its way is that while the performance of a handful of big-name stocks is driving major indices to new highs, stocks of many other companies have already fallen into bear markets. (For more, see also: Why a Stock Market Correction May Lead to Overreaction.)

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