September Is the Stock Market's Worst Month on Record. Here's the 1 Move History Says AI Investors Should Make.
September is historically the poorest-performing month in the stock market.
Overview
September has a reputation problem on Wall Street, and if you own a basket of artificial intelligence (AI) stocks, it is hard to ignore. Investors talk about the September Effect the same way people talk about the first week back at the office after a summer vacation: The pace picks up, patience is thin, and small problems suddenly feel bigger.
Since 1928, the S&P 500 (SNPINDEX: ^GSPC) has posted an average return of -1% in September. The Nasdaq Composite (NASDAQINDEX: ^IXIC) features a similar September decline since its inception in 1971.
Details
The long-running theory behind September sell-offs is that as fund managers come back from vacation, they rebalance their portfolios -- taking gains in stocks that have rallied hard while harvesting losses from laggards.
Source
Originally published at www.fool.com.