That sinking feeling you get when you realize that school's about to start? The excitement you feel at the beginning of the new NFL season?
Uh, no. It's a historical trend on Wall Street.
September traditionally unfolds as a weak month for the stock market. Maybe everyone's too worried about their kids going back to school and/or too excited about the new NFL season to spend too much time buying stocks. The stated wisdom has to do with traders getting back to work after summer vacations.
As you can tell from that explanation, though, the "September effect" isn't exactly an air-tight, scientifically-proven phenomenon. Instead, it's based mostly on tradition, mixed with a little data. However, the statistics showing the veracity of the September effect depend a lot of the time period you're studying.
Whatever the case, perception can sometimes become reality. Many Wall Street folk think September is a weak time for stocks, prompting them to worry about buying shares during the month, thus diminishing demand (if only on the margins).
Oh well, maybe spend a few weeks betting on NFL games instead. We like the Vikes this year.
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Finance: What is the Super Bowl Indicato...1 Views
Finance Allah shmoop what is the Super Bowl indicator And
sadly Nostradamus has been dead for five hundred years So
when your tea leaves have dried up and your crystal
ball is in the shop what do you use to
determine whether the stock market is about to go up
or down Well according to the famous Leonard Koppett sports
writer and major superstition aficionado You Khun tell into a
reasonable degree of certainty which way the market will bounce
based on the results of the Super Bowl No this
Super Bowl Okay so he might have been half kidding
But when Kopit proposed his future telling system in nineteen
seventy eight it made a lot of sense to a
lot of people mostly the people who rely on astrology
charge for their investing decisions But still you know the
concept resonated back when the term was coined The market
went up ninety percent of the time that the NFC
team won the big game and reliably went down whenever
the A F C team emerged victorious Anyway assuming that
Tom Landry then coach of the Dallas Cowboys wasn't massively
investing in plastics and pharmaceuticals each time his boys brought
home the trophy Well there was probably nothing to this
theory but it sure seemed convincing at the time Well
as time would tell the theory was proven to be
about as flimsy as the Tampa Bay Buccaneers Front seven
Well between two thousand seven two thousand seventeen the Superbowl
indicator it was exactly fifty percent accurate In other words
you might as well trust this guy to predict market 00:01:30.29 --> [endTime] turns
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