Sell in September and Go Away

Demystifying September's Market Blues: A Dive into Financial Seasonality

Source: Pexels

Today, let's break down the enigma that is September's market performance. We all know that summer historically tends to be less profitable than other parts of the year, at least in the U.S. stock market since 1928. But, here's the catch – being less profitable doesn't mean the market crashes on average during the summer. It simply means it grows at a slower pace. And let's be clear, slower growth isn't a problem for investors because any growth is a welcome sight.

In fact, those who heeded the infamous "Sell in May and go away" adage would have missed out on quite a decent summer in the S&P 500.

Summer of 2023: A Profitable Spell for the S&P 500

Fast forward to September, and several subscriptors have been inquiring about the negative seasonality of this month and why it keeps happening.