Sell stocks on Rosh Hashanah? The old stock market legend is irrelevant this time

The article examines the old Wall Street legend that during the Ten Days of Repentance the market tends to decline, and argues that this year, due to the Fed's dramatic interest rate decision expected next week, this legend has no practical significance.

The article examines the old Wall Street legend that during the Ten Days of Repentance, between Rosh Hashanah and Yom Kippur, the US stock market tends to decline. According to the theory, investors should sell stocks on the eve of Rosh Hashanah and buy them back after Yom Kippur. The legend's origin is attributed to 1955, when President Eisenhower suffered a heart attack during this period, and the Dow Jones index fell 6.5% on the eve of Yom Kippur. Studies show an average tendency for a 0.4%-0.5% decline in the S&P 500 during this period, with negative returns in more than half of the years. Possible explanations include the holiday break of Jewish investors, the spiritual atmosphere of the 'Days of Judgment', or simply the seasonal September effect. However, the article argues that this year, the legend is irrelevant due to a much more significant macro event: the Fed's interest rate decision next Wednesday, September 16, and the consumer price index for August to be released this Friday. Wall Street's direction will be determined by these macro data, not by the Hebrew calendar.