September has a reputation in financial headlines as a month where stock market performance has often been weaker compared to other times of the year. While history shows patterns, it’s important to remember that no single month determines the outcome of a retirement plan. For FRS members and investors alike, the focus should remain on long-term goals rather than short-term fluctuations.
Looking back at historical market data, September has sometimes been one of the softer months for the market. Analysts have suggested a variety of reasons — from seasonal factors to investor behavior — but the exact cause is less important than the takeaway: markets move up and down in the short term, and individual months don’t tell the whole story.
For those in the FRS Investment Plan or with other market-based investments, it’s natural to feel uneasy during times of volatility. But retirement planning typically spans decades, not months.
Short-term trends can create noise that distracts from your bigger picture.
Long-term discipline allows time for both strong and weak months to balance out.
Remember Your Time Horizon
Retirement investing is generally a multi-decade journey. A single month’s performance rarely changes that trajectory, even if you are retired, then your portfolio is designed to operate through retirement.
Stick With a Diversified Approach
*Spreading investments across asset classes can help reduce the impact of seasonal or cyclical swings.
Avoid Emotional Decisions
Headlines may amplify short-term concerns, but reacting too quickly can lock in losses or shift you away from your intended strategy.
Review, Don’t React
Periodic reviews of your allocation, goals, and risk tolerance can help you stay aligned — without feeling the need to act on every dip.
While September often receives attention for its past market performance, retirement planning isn’t about any one month or season. For FRS members, the most effective approach is to stay focused on your overall strategy, check that your investments match your long-term objectives, and review your plan periodically. Market movements are part of the journey, but a disciplined approach helps keep short-term fluctuations in perspective.
*Asset allocation and diversification do not guarantee a profit or protect against a loss in a declining market.