Stock Market Investors Just Got Bad News About President Trump’s Economy. History Says This Will Happen Next.
Rising interest rates and elevated bond yields hint at a potential stock market correction.
Overview
Since 1928, the S&P 500 (SNPINDEX:^GSPC) has declined in September 55% of the time, losing an average of 1.1%, according to Yardeni Research. Both metrics make September the worst month of the year for the U.S. stock market.
Experts quibble over the cause of the so-called "September Effect," with some attributing the losses to a self-fulfilling prophecy and others citing seasonal factors, such as portfolio rebalancing and the end of summer vacations.
Details
This year, the S&P 500 traded sideways through the first three weeks of September, but investors recently got bad news about President Trump's economy, hinting at a potential stock market correction.
Source
Originally published at www.fool.com.