Stocks go up in in the fourth quarter of the year 80% of the time—what that means for your money

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Market history tells us that the last three months of the year tend to be a good time for stocks. Here’s how investing pros think about stock market…

Rather, investors will be glad to know that October kicks off what is typically a good three months for stocks, following a month in September that historically tends to be rough. And Septembers have been especially rough lately. The S&P 500 index posted September declines of 3.9% in 2020, 4.8% in 2021, 9.3% in 2022 and 4.7% in 2023.

"To suggest that someone trade purely off the market's seasonal tendencies is a fool's errand," says Liz Ann Sonders, managing director and chief investment strategist at Charles Schwab. To be clear: That rally may not come any time soon. The market may hit the skids into the end of the year. The key for investors is to stick to your long-term plans and continue to buy periodically, regardless of what the market is doing.

 

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