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 annua