September's Historical Impact on Stock Market Performance
Despite being the only month with an average negative return, long-term trends suggest resilience in the market.
- September is the worst month for stocks, with an average negative return since 1926.
- The S&P 500 has fallen in September 56% of the time over the past century.
- Several theories explain this trend, including post-summer portfolio adjustments and increased bond offerings.
- Historical data shows that September's negative impact is more pronounced during certain years, such as 1931 and 2008.
- Despite the September Effect, long-term investors are advised to remain focused on overall market resilience.