Yesterday, the 3rd of September 2020, witnessed a pretty big drop in the stock market with Nasdaq leading the decline with a drop of 5.07%.
Out of interest I looked at the performance of September going back to 1970, using S&P 500 (not including dividends). The chart below shows the performance from the close of August until close of September for the last 50 years (investing 100% of your equity):
The stock market has risen a lot since 1970, but an account worth 100 000 in 1970 is only worth 71 171 at the end of September 2019……..
The performance of September compares to this for all months:
|Avg. gain %||Win-ratio %|
Why is September bad? I have no idea.