The 'September Effect' refers to the historical trend of stock markets declining in Sep, especially in US election years, due to uncertainty surrounding election outcomes. Since 1928, the S&P 500 has averaged a -0.7% return in Sep of election years. However, the market often experiences a post-election rally as clarity on policy and leadership emerges, and past performance doesn't guarantee future results.
As an avid investor, I remain hopeful. I believe this period of volatility presents an attractive opportunity to add positions in fundamentally strong companies with solid financials, competitive advantages, and long-term growth potential. By doing so, investors can capitalize on temporary dips and set themselves up for potential long-term gains.
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September Effect in Election Years: Will This September Close Up or Down?
@MillionaireTiger：Welcome to Thursday Special![LOL] We often hear about the so-called "September Effect" in the stock market. Looking back at the past five years, it seems to hold some truth, but if you widen the scope to over 10 years, the trend isn’t as clear. Below is the historical performance of the S&P 500 in September over the past decade. But what about this year? It’s an election year in the U.S., and elections have been known to impact the market. Here’s something interesting: Since the S&P 500 Index began, there have been 23 election years. Out of those, 19 times (83%) the market delivered positive returns. Here’s the breakdown: When a Democrat was in office and another Democrat took over, the market’s average annual return was 11%. When a Democrat was replaced by a Republican, the average annual return was even higher at 12.9%. So, with this in mind, and the S&P's typical September performance, do you think the election year effect can save this September’s market? Will this September close up or down? 1%? 3%? 5%? 🎁Prizes Comment Rewards: All valid comments on the following post will receive Tiger Coins, but don’t copy others’ homework hahaha. We strongly recommend selecting the "Also repost" button when posting a comment to receive more rewards.
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