The September effect is a phenomenon where stock market returns tend to be weaker in this month compared to other months in the year. We crunched the numbers to see if September is really the worst month and by how much, and what the strongest months are. <\/p>
Analysis by Finder shows that September is consistently the worst-performing month for global stock markets going back 50 years. Markets across four major indexes (S&P 500, FTSE 100, Nikkei 225 and Euro Stoxx 50) closed an average of 1.2% lower than the start of the month on average. <\/p>
September has the worst performance in the Euro Stoxx 50, down 2.13% at the end of the month. The FTSE 100 sees an average decrease of 0.98% in September, while the S&P 500 and Nikkei 225 see declines of 0.88% and 0.83% respectively. <\/p>