By: Gerald Sparrow President & Founder, Sparrow Capital Management, Inc.
In my opinion, we’re entering a tricky time of year: September and October have a reputation for bringing an extra measure of market volatility.
Some of the stock market’s most challenging events have hit in September and October, and other seasonal trends can also play a part. Investopedia found that institutions start preparing for year-end distributions around this time. Plus, individuals tend to reposition their portfolios after the summer months.
This chart shows the average weekly S&P 500 performance since 1923. I’ve highlighted September and October so you can see how they compare to the rest of the year.
![](https://investing.interactiveadvisors.com/content/2022/09/sp.jpg)
So what’s an investor to do? Just be prepared to roll with an uptick in volatility, and don’t let seasonal trading influence your overall strategy.
PHOTO CREDIT:https://www.shutterstock.com/g/Rudzhan
Via SHUTTERSTOCK
DISCLOSURE
Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.
Investors cannot invest directly into indexes. The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on exchanges in the United States
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.