S&P 500: September Slump Deepens as History Suggests Challenging Times Ahead

investing.com:

The stock market consistently exhibits certain historical patterns year after year, and it is currently entering a phase that has historically been marked by heightened risk.

Although the underlying reasons for these patterns can differ, one recurring trend that deserves investors' attention is in the month of September.

Examining the S&P 500's performance since 1950, the period from the 20th to the 30th of September, on average, has predominantly favored the bears.

Remarkably, out of this 11-day period, 9 days have historically seen negative returns, with only 2 days posting positive gains, one of which was nearly flat.

It's worth noting that this pattern is not an infallible rule, nor is it an exact science. Rather, it's a historical trend that has held true over many years.

While there may not be a clear explanation for why the S&P 500 tends to perform poorly during these September days, the data undeniably reflects this recurring trend. This year, the 20th and 21st of September have already followed the historical pattern, with the S&P 500 experiencing declines of -0.94% and -1.64%, respectively.

While history may not always repeat itself, it does rhyme from time to time. Therefore, it's prudent for investors to stay informed about these historical tendencies as they navigate the ever-changing landscape of the stock market.

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