The traditional lowest performing months for the stock market are June, August, and September. These months have historically shown weaker performance compared to other months12.
- June: Historically, June is known to be a weak month for the stock market. This is primarily due to the decrease in trading volume as many investors are on vacation during this month. The market tends to rally before holidays, which can lead to a decrease in stock prices after the holiday season. Additionally, June has been identified as a month where sellers may outpace buyers, which can contribute to a downward trend in stock prices3.
- August: August is another month that has traditionally shown weaker performance for the stock market. Similar to June, August also experiences a decrease in trading volume due to vacations and holidays. Additionally, the summer months often see a slowdown in economic activity, which can negatively impact stock prices2.
- September: September is known as the "danger" month for the stock market, with an overall negative return historically4. This month is often marked by investors locking in gains from the summer months, which can lead to a decrease in stock prices. Additionally, September is the month where the S&P 500 has the largest average decline in down months, with a decline of (4.7%) since 19281.
These three months consistently show weaker performance compared to other months, with September being the month that has the most significant negative impact on the stock market.
8/20/2024 03:55am
