The “October
effect” is a flawed theory that assumes that the stock market falls in October.
October
Effect ExplainedThis belief
is attached to the biggest stock crashes in history happening in this very
month, like the famous black Monday in 1929 and the black Monday in 1987. There
is no evidence that October is the worst month for stocks though and statistics
even point to September being worse on average. It’s always
best to look at the fundamental context rather than blaming a particular month.
Is the October
Effect Real?This belief
may have more of a psychological “fear” rather than being based on facts and in
fact some bear markets actually bottomed in October delivering afterwards good
returns. On the other
hand, you may say September is a bad month because statistically stocks
performed worse during the month and some black swan events like the Lehman
Brothers collapse happened in September, but ironically it doesn’t have the
same theory attached to it.
The “October
effect” is a flawed theory that assumes that the stock market falls in October.
October
Effect ExplainedThis belief
is attached to the biggest stock crashes in history happening in this very
month, like the famous black Monday in 1929 and the black Monday in 1987. There
is no evidence that October is the worst month for stocks though and statistics
even point to September being worse on average. It’s always
best to look at the fundamental context rather than blaming a particular month.
Is the October
Effect Real?This belief
may have more of a psychological “fear” rather than being based on facts and in
fact some bear markets actually bottomed in October delivering afterwards good
returns. On the other
hand, you may say September is a bad month because statistically stocks
performed worse during the month and some black swan events like the Lehman
Brothers collapse happened in September, but ironically it doesn’t have the
same theory attached to it.
The “October
effect” is a flawed theory that assumes that the stock market falls in October.
October
Effect Explained
This belief
is attached to the biggest stock crashes in history happening in this very
month, like the famous black Monday in 1929 and the black Monday in 1987. There
is no evidence that October is the worst month for stocks though and statistics
even point to September being worse on average.
It’s always
best to look at the fundamental context rather than blaming a particular month.
Is the October
Effect Real?
This belief
may have more of a psychological “fear” rather than being based on facts and in
fact some bear markets actually bottomed in October delivering afterwards good
returns.
On the other
hand, you may say September is a bad month because statistically stocks
performed worse during the month and some black swan events like the Lehman
Brothers collapse happened in September, but ironically it doesn’t have the
same theory attached to it.
