Prediction: September Will Be Volatile, but Stocks Will Rally After November Midterms

September historically shows negative returns for stocks, with volatility expected ahead of midterm elections. However, the S&P 500 has posted gains in the 12 months following midterm elections 95% of the time since 1938 and 100% of the time since 1950, averaging 14.5% annual returns. Investors are advised to maintain consistent dollar-cost averaging into index ETFs and prepare cash for potential bargains in October.