Should investors fear the “September effect” in stock markets?

The first month after the summer holidays can be volatile for stock markets. Are investors right to fear the September effect?

September 2024 desk calendar
(Image credit: Nora Carol Photography via Getty Images)

Investors are a superstitious bunch and, over the years, a number of idioms have emerged in the City – some verging on the bizarre. 

You might have heard the old “sell in May and go away” adage, or perhaps you live in fear of the “September effect”. This is the belief that stock markets experience volatility in the month of September. You could call it the investor’s equivalent of the back-to-school blues. 

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.