Get Ready for September: The Market’s Toughest Month

As we head into September, historically the most challenging month for the stock market, investors should brace for increased volatility. Since 1928, the S&P 500 has posted negative returns in 55% of Septembers, and the last four years have been no exception. With traders returning from summer vacations, the surge in trading volume often leads to sharp market swings.
This year, the Federal Reserve’s policy meeting on September 18th is a key event to watch. Depending on the August jobs report, we could see significant moves in interest rates, which might either stabilize the market or heighten the risk of a downturn.
Experts suggest that even in a volatile environment, opportunities still exist. Dividend-paying stocks, especially in sectors like utilities, healthcare, and defense, could offer a safer haven as interest rates fall and the dollar weakens. Additionally, buying into the seasonal dip in September or October has historically been a profitable strategy, with the potential for a year-end rally.
While September can be a tough ride, staying informed and strategically positioned can make all the difference.