Rising Uncertainty for September
Historically, September is the worst month for U.S. stock market performance. Since 1929, the S&P Composite Index has averaged -1.1 percent for September, making it one of only three months with negative average returns over that time. The worst performing single month over this time period was September 1931, when the S&P composite fell 30 percent. There are several macroeconomic uncertainties facing the United States and the global economy as we head into September. The potential tapering of the U.S. Federal Reserve’s asset purchase program, the budget debate in Washington, and the German election could all increase volatility in global financial markets.
AVERAGE MONTHLY RETURNS OF THE S&P 500 INDEX (1929 – 2012)*