Is September a bad month for stocks?

Monthly averages can be driven by wild moves that have nothing to do with what month it is. 

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Don’t fear September?
Welcome to the Know the Difference Minute for Wednesday, September 6th.
People who look at stock charts say September is the worst month for stocks.
Is it?
On average, yes, but the idea that September is bad relies on using an average and saying that the average happens all the time, or that it will happen this time.
Those monthly averages can be driven by wild moves that have nothing to do with what month it is. They often have to do with major political events or decisions being made in September.
Well, Congress is back from recess and the clock is ticking to pass a budget. Whether Congress does or doesn’t isn’t the type of event the market typically cares about because they tend to be short-lived. It’s policy blunders that the market reacts to.
Mark Twain said, “When congress is in session no American is safe.”
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.