November Has Been Seasonally Strong

| November 01, 2023

Even after a red October provided more trick than a treat for stock market investors, we continue into what has historically been one of the strongest periods for stock market seasonality.

A red October was the third consecutive month in a row that the S&P 500 was lower. August and September have never been good for stock market seasonals but historically, and especially in recent years, October has had a fairly solid track record for stocks—not the case in 2023 as the S&P 500 fell 2.2% during the month. The good news is that from a seasonality perspective, looking at data back to 1950, November has been the strongest month and the start of both the strongest two-month, and six-month periods for stocks.

November is the best performing month since 1950 and second best month over the past five and 10 years.  Furthermore,  only one of the past 11 Novembers has the S&P 500 been down over the month (in 2021), though in the midst of overall impressive average returns (+1.7% monthly return since 1950) November has also had its share of big down months, notably in 2008 (-7.5%), 2000 (-8%), 1987 (-8.5%) and 1973 (-11.4%).

View enlarged chart

November-December is also the strongest two-month period on average looking at all periods back to 1950 but this two-month pairing has been often been relying on November in recent years as December’s “Santa Claus Rally” returns have been mixed.

View enlarged chart

Looking at six-month return windows, November-April is also the strongest of these looking at all periods back to 1950 and over the past 20 years. In recent history over the past five and 10 years, this pattern has broken down somewhat with the November-April returns more middle of the road and the strongest six-month period being March-August. 

View enlarged chart

When studying the proportion of positive monthly returns since 1950 November has posted a positive return around 69% of the time.  The only months that have historically finished in the green more often are April and December.

View enlarged chart

October’s negative return meant stocks finished down three months consecutively for the first time since the midst of the COVID-19 outbreak at the start of 2020, and prior to that in 2016. Taking a look at how stocks performed after such occurrences the good news is that if October turns out to be the end of the run of negative months, then the S&P 500 return one year out following such an inflection is well above average with a 17.9% rebound versus an average of 8.9% for all periods. If the negative run of monthly returns continues past three months, then the returns a year out are below average (perhaps unsurprisingly given this period includes at least one negative month to start) but are still positive more often than not and have a healthy median return. If the run of negative months stops at four or five, then the returns a year out are still strong as on average stocks bounce back over the following 12 months. The longest run of consecutive down months since 1950 was 9, occurring from January to September 1974 (during which time the S&P 500 was down 35% but went on to recover 32% over the next 12 months).

View enlarged chart

In summary, though somewhat mixed, overall historic stock market seasonals are still pointing to a supportive environment for stocks coming into the year-end. Three consecutive months of selling pressure may have also exhausted sellers and left stocks approaching oversold levels.  

As always, if you have questions please don't hesitate to reach out or book a meeting with me,

Bryan Foronjy, CFP®

Founder and Principal Wealth Manager

Foronjy Financial

CA Insurance Lic. # 0F84170


Schedule an office (or phone) appointment here:


San Luis Obispo Office Contact Information:

(805) 543-1033

956 Walnut St, #200
San Luis Obispo, CA 93401


Santa Barbara Office Contact Information:

(805) 880-9444

  401 Chapala St, #105
Santa Barbara, CA 93101


Bryan Foronjy is a registered representative with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Mariner Independent Advisor Network, a registered investment advisor.  Mariner Independent Advisor Network and Foronjy Financial are separate entities from LPL Financial.

The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.


This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. For more information on the risks associated with the strategies and product types discussed please visit  

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

Securities and advisory services offered through LPL Financial, a registered investment advisor and broker-dealer. Member FINRA/SIPC.

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Deposits or Obligations | Not Bank/Credit Union Guaranteed | May Lose Value

Tracking # 499499