What’s the worst month for stocks? The answer may surprise you. It did me. We’ll spend the next two minutes talking about it and why it matters. Here’s a hint, it has to do with the upcoming Federal Reserve meeting. This is What’s Happening Now.
Podcast: What's Happening Now: What's the Worst Month For Stocks? (2:26)
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The Worst Month for Stocks
If I had to guess the worst month for stocks, I would have said January. As it turns out, August is the worst month for stocks.
Only two months—August and September—have a negative average return. The rest are positive.
Click on the graph to enlarge
August Has Been Rough – Sometimes.
August has been a bad month for stocks. But that doesn’t mean you should make any major decisions. In the past 25 years, August produced gains in the stock market 17 times.
Six of the eight times stocks fell during the month, it was ugly.
Click on the graph to enlarge.
Why does this matter? The Federal Reserve meets at the end of July. Most anticipate an interest rate cut. But if it doesn’t happen, it could start a sell off in the stock market—starting in August.
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Neal Watson is a Certified Financial Planner™ Professional and a Financial Advisor with Fleming Watson Financial Advisors He typically works with people who are planning for retirement. Fleming Watson is a Registered Investment Advisory firm located in Marietta Ohio. Our firm primarily serves Marietta, Parkersburg, Williamstown, St. Marys, Belpre, Vienna and the surrounding communities in Washington and Noble Counties in Ohio and Wood and Pleasants county in West Virginia.