Green Daze Postponed Until October

Looking for green on your screen?

If history is any guide you might have to wait until October. September is historically the worst month for stocks, going back to 1928, according to Credit Suisse:

September is the worst performing month for the SPX (using monthly data going back to 1928.) The -0.57% return is 54 bps worse than the second worst month. The good news is that November, December and January historically show strong performance in both large and small cap names. Large cap seems to lead the recovery after September.

Small cap still underperforms in October, but makes up for it by outperforming large cap November to February. Looking at style, growth tends to outperform value in the last quarter of the year, irrespective of market cap. Credit Suisse

This market has made a mockery of many historical precedents and relationships, although Sell in May and Go Away worked out pretty well. But what is the rush to buy stocks? We are back to waiting for the housing and credit markets to come around, not to mention the looming election.

Wake me up when September ends, indeed....

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