Here's why September and October are historically weak for stocks

Published On Sep 11, 2024, 6:55 AM

Historically, September and October are considered weak months for stocks, as significant market panics have often occurred during these times. This pattern dates back to the 19th century due to agricultural financing cycles that led to cash shortages in New York during autumn. Although the creation of the Federal Reserve in 1913 improved market stability, the tradition of fearing market downturns in the fall persists, potentially creating a self-fulfilling prophecy. Overall, investors remain cautious during these months due to historical trends.