Sam Stovall, U.S. equity strategist for S&P Capital IQ, points out that despite the market's tremendous rebound last week, the S&P 500 index of blue chip U.S. stocks is still down 5.5% month to date.
Why is that significant?
"In the 11 times that the S&P 500 fell by more than 5% in August, it declined in 80% of the subsequent Septembers, and fell an average of nearly 4%," Stovall says.
Plus there's the fact that the Septembers, like August, are one of the spookiest months for stocks. Over the past quarter century, August has been the worst month for the Dow and S&P 500. Yet over the past half century, September actually holds that title, according to the Stock Trader's Almanac.
So, "Is the worst behind us?" Stovall asks. "Possibly not."
Source: MSN Money
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