You’ve probably already seen the headlines: September is the worst month of the year for stocks.
True, but how significant? Not much.
The below chart illustrates that over the past six years, two years were down (~-3.5%) and the other four years where either flat or up. There is a seasonal pattern that implies underperformance for the month of September, but on average, it’s inconsequential. Since 1950, the average performance for the month of September was 0.54%.
What will happen this time? I have no idea, but my cynicism leads me to speculate that the stock market will improve ahead of the midterm elections.
If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.
—————————————————–