Now that we're past Labor Day, not only is summer coming to an end, but there's downbeat news for investors as well: September is, on average, the worst month for stock prices. Since 1937, the average September performance of the S&P 500 index and the Dow Jones Industrial Average is a 1 percent decline, while the Nasdaq Composite Index has seen an average fall of 0.5 percent, according to Dow Jones Market Data.
Such performance wouldn’t be welcome news for equity market investors, who just suffered through a 1.7 percent August decline for the Dow, a 1.8 percent loss for the S&P and a 2.6 percent drop for the Nasdaq. These are the worst August performances for all three benchmarks since 2015.
It’s not all bad news, however. According to an analysis by LPL Financial, the past 15 times that the S&P 500 lost ground in August, the rest of the year saw positive returns every single time.
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