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September Accident: The Most Detrimental Month in Stock Market History for Investors

Stock market performance in September is typically subpar, yet it presents potential investment chances before the robust fourth quarter sets in.

Catastrophic market setback occurs in September, yielding the most detrimental month for stock...
Catastrophic market setback occurs in September, yielding the most detrimental month for stock market investors.

September Accident: The Most Detrimental Month in Stock Market History for Investors

In an interesting twist for investors, September, a month traditionally considered the worst for global stock markets, offers ideal buying opportunities, particularly in presidential election years.

According to statistical analysis, the average negative return for the S&P500 in September is 1.1%, a relatively moderate loss compared to other months. This trend is further amplified in presidential election years, with September's performance on global stock markets significantly better compared to regular years.

The fourth quarter, following September, is statistically the strongest quarter for stock markets. This trend holds true not only for the S&P500 but for all global exchanges, with more winners than losers on average over long periods. In the past 13 years, since 2010, the fourth quarter has proven particularly strong.

The saying "Sell in May and go away, but remember to come back in September" encapsulates this phenomenon, suggesting that September offers buying opportunities. If an unexpected setback occurs in September during presidential election years, it can provide even more enticing buying opportunities.

Investors should not fear a setback in September during presidential election years. On the contrary, they should view it as a potential opportunity to invest. The performance of global stock markets picks up significantly after the election in November during presidential election years.

It is essential to note that this analysis does not discuss stocks that could double your money and pay high dividends, as suggested in some headlines. The search results do not provide specific names of analysts who claim that certain stocks could double in value and pay high dividends. While some institutions like DZ Bank and Morningstar are mentioned with positive outlooks on stocks and dividends, no individual analysts are named making this particular claim.

The article, originally published in Euro am Sonntag, does not provide any warnings about corporate profits and stocks coming under pressure, as mentioned in the "Goldman Sachs warns" headline.

In conclusion, while September is generally considered the worst month for global stock markets, it offers unique opportunities for investors, especially during presidential election years. By understanding these trends, investors can make informed decisions and potentially reap the benefits of buying at lower prices during this month.

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