September Since 1950

T.S. Eliot spoke of April as the cruelest month, presumably because April is a sort of purgatory between winter and summer. Sunny, rainy, snowy. April is never quite sure of itself. But in the realm of finance, another month usurps the dubious April. At the end of the summer, September leers and smirks as an indignant market tyrant. September is confident with its ability to bring a decline to the three major indices.

CNN notes, “Since 1950, the Dow has fallen an average of 1.1 percent in September, while the S&P 500 has fallen an average of 0.7 percent…” Of course, let us not forget the NASDAQ. Since its inception, it “has seen an average decline of 1 percent in the month.”

With this September comes a stagnating housing market, gross national debt of around $8.5 trillion, and a negative personal savings (about 1.5%) – all fragments that must eventually be shored to prevent ruin.

The Daily Reckoning