Entering the Seasonally Weak Period for the Stock Market

The stock market tends to exhibit certain seasonal patterns, where some months historically perform worse than others. Here's a general overview:

1. September:

• Historically the Worst Month: September has the worst track record of any month for stock market performance. This trend is often attributed to a variety of factors, including investors returning from summer vacations and rebalancing their portfolios.

2. October:

• Volatility Concerns: While October has seen some of the most significant crashes in stock market history (like the 1929 and 1987 crashes), it isn't consistently the worst month. However, it tends to be highly volatile, which can lead to sharp declines.

3. February:

• Post-Holiday Lull: February is another month that has shown weaker performance. This may be due to a variety of factors, including the post-holiday economic slowdown.

4. June:

• Early Summer Weakness: June sometimes sees weaker performance as the summer lull begins, with trading volumes often lower and fewer catalysts to drive the market.

These patterns are generalizations and may not hold true in every year, as numerous factors influence market performance.

Investors often look at these seasonal trends as part of a broader strategy, but the direction of price trends is the final arbiter, so we focus on the trend.