A New Report Suggests September Is the Worst Month to Buy Stocks. History Offers a Clear Answer for How to Handle This
Yahoo Finance ·
The "September Effect" is officially upon us. The broader benchmark S&P 500 ( ^GSPC +1.06% ) has averaged a 1.13% decline in September from 1928 to 2021, according to Yardeni Research, worse than any other month of the year. Over the past 25 years, MacroTrends research says the S&P 500 has averaged a 1.4% decline in September. That's much worse than the S&P 500's average annual returns and has spooked some investors heading into the fall. History offers a clear answer for how to proceed. It's hard to pinpoint why stocks haven't historically performed as well in September as in other months. August is viewed as a dull month, so that could be one explanation: As institutional investors return from their summer vacations, they begin positioning their portfolios for the end of the year.
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