Why September is the worst month of the year for the stock market

September has historically shown lower average returns compared to other months in U.S. stock market data, according to financial records. The "September Effect" refers to a pattern where the S&P 500 and other major indices have recorded negative average returns during September over several decades. Market analysts attribute this partly to portfolio rebalancing, tax-loss harvesting, and reduced trading volume during the month. However, historical patterns do not guarantee future performance, and individual stock performance varies significantly regardless of the calendar month.

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