September has always been bad for stocks. But should you sell?

Published On Sep 3, 2024, 4:13 PM

September is historically known as the worst month for stocks, with an average negative return since 1925. Analysts attribute this trend to various factors including portfolio rebalancing by traders returning from summer vacations, increased bond offerings, and mutual funds closing losing positions at the end of their fiscal years. Despite this, over the last century, the S&P 500 has performed positively in September more often than negatively. Additionally, in election years, stock performance has tended to be better than usual.