Memorial Day and Your Finances
Economically, Memorial Day weekend is a powerhouse. Retailers across the country roll out major promotions, with sales on appliances, furniture, electronics, and home goods rivaling those of Black Friday. Consumers take advantage of these deals, and many households host gatherings or take vacations, leading to a spike in spending on travel, food, and leisure. In 2025, AAA projected over 42 million Americans would travel 50 miles or more for the holiday, boosting spending on gas, hotels, and entertainment. However, with inflation affecting many budgets, more than three-quarters of consumers report seeking ways to save-shopping sales, using coupons, and opting for budget-friendly celebrations.
The financial landscape is also shaped by Wall Street’s observance of Memorial Day. All major U.S. stock exchanges, including the New York Stock Exchange and Nasdaq, close for the holiday, resulting in a shortened trading week. The Friday before Memorial Day, known as a “getaway day,” typically sees lower trading volumes as investors and traders begin their long weekend early.
And there can be seasonality in financial markets as well. “Sell in May and go away” is a well-known stock market adage suggesting that stocks tend to underperform from May through October compared to the November-April period. The idea, popularized by the Stock Trader’s Almanac, is that investors should sell their holdings in May, hold cash during the summer, and reinvest in the fall. While historical data shows the S&P 500 has averaged lower returns in these summer months, recent decades have challenged this pattern, with many years seeing positive summer gains. Most experts now recommend a diversified, long-term investment approach over following this seasonal strategy.
The holiday marks a pivotal moment in the financial calendar. From increased consumer spending and travel to shifts in stock market activity, the holiday influences both household budgets and broader economic trends but more importantly, Memorial Day is a time of remembrance and gratitude. Whichever way you choose to observe the day, please honor those who - over nearly 250 years - have made the ultimate sacrifice to give us the freedoms and benefits we still have today.
Michael P Henderson, CFP® CKA®
Wealth Advisor/Portfolio Manager
CERTIFIED FINANCIAL PLANNER™
Securities offered through LPL Financial, Member FINRA/SIPC. Crossover Point Advisors is another business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
Content in the material is for general information only and not intended to provide specific advisor or recommendations for any individual.