The major market indices such as the SPDR 500 Index (SPY) and Nasdaq Powershares (QQQ) posted losses on 9 of the 12 trading days so far this month — giving credence to the data showing that September is statistically the worst-performing month for stocks.
However, “worst” is a relative term. The data shows that September generated an average stock market return of -0.1%, with a win ratio of only 46%. This stands in contrast to the other 11 months, which average a 0.5% gain with a 57% win ratio. But, let’s face it: A 0.1% drawdown is far from devastating. And even with the decline over the past two weeks, the SPY and QQQ are still only 2.5% off all-time highs. Still, given we’ve become accustomed to stocks rising daily, this pullback might feel much worse and has investors wondering if this slide will turn into a selling cascade.
The post 3 Reasons Why This Market Decline Won’t Turn into a Serious Sell-Off appeared first on Option Sensei.