facebook_pixel

If you are an investor or follow the financial news then you are familiar with the September Effect, the curse of September on the stock market has investors worry every year. Historically September is the worst month for the stock market, remember 2008 market crash when Lehman Brother’s went down and market crashed? Yup, September 2008.

Bear market in 2002? Again September

Crash in 2000 and when 9/11 happened? September 2001

When Dow lost almost 30% in the 1930 Depression….you guessed right, again it was September.

This year…well we are only two days into September but so far we seem to follow the trend, S&P 500 and TSX both are slightly negative so far.

The list can go on and on about all the stock market crashes in the month of September, but is this just a coincidence or is there something about September that drags down the stock market like the Bermuda triangle drags down ships?

There are several theories about the September effect, my favorite theory is by York University finance professor Mark Kamstra. He relates the September effect to seasonal affective disorder (SAD) a psychological condition here is the study?

Brett Arends at Wall Street Journal  took a look at some of the theories on the September effect last month and the conclusion is that nobody really knows why this happens, maybe it is just a coincides.

What should you do? Well I’d say not much, just continue with your life and investment plan and follow the 10 successful investing tips. Some may take advantage of this September effect and go shopping on Wall and Bay street.

What’s your theory about the September effect? Do you believe it’s just a coincides?