Value Stocks Look to Avoid ‘September Effect’ Concerns After Enduring Mixed Year

Value stocks have had a mixed 2023, and with September Effect fears here, investors could face more turbulence.

Stock trader John Bowers works on the floor of the New York Stock Exchange on Aug. 25, 2023, as Federal Reserve Chair Jerome Powell's speech is broadcast on a TV screen. Richard Drew/AP Photo

September has typically been the worst-performing month in the U.S. stock market over the past century, with investors referring to this time of year as the “September Effect.” From 1918 to 2022, the S&P 500 index recorded an average decline in September, although some years have had better results than others.

“September has been quietly consistent: the S&P 500 has lost an average of 1.1% in that month across years dating back to 1928,” Jan Szilagyi, founder of investment research firm Toggle AI, wrote in a research note.