The stock market has soared so far this year, but expect the month of August to be lackluster if the past several decades are any guide.
August is the second-worst month for the S&P 500 (^GSPC) and Nasdaq (^IXIC), and the worst for the Dow Jones Industrial Average (^DJI) over the last 35 years, according to data compiled by Stock Trader’s Almanac.
The site’s analysis also shows the August before a presidential election year points to a particularly weaker month, as the Dow Jones Industrial Average, the Nasdaq, and S&P 500 all declined in the last three pre-election years: 2019, 2015, and 2011.
Dating back even further to 1950, the S&P 500 has historically been flat on average in August and generated median gains of 0.6%, according to data compiled by LPL Financial.
And with stocks on a roll so far in 2023 and relatively weak seasonal trends ahead, “we suspect this could be a logical…
