Think September was bad? Beware of Octoberphobia, Stock Trader’s Almanac Warns By

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By the team

While September has already been a brutal month for stocks, October is a month notorious for its famous stock market crashes, the Stock Trader’s Almanac warns.

The almanac highlighted the stock market crashes of October 1929, the famous “Black Monday” of October 19, 1987, the 554-point drop of DJIA on October 27, 1997, the back-to-back massacres of 1978 and 1979, Friday the 13th of 1989 and DJIA’s 733 point drop on October 15, 2008. Additionally, during the week ending October 10, 2008, the 1,874.19 point drop (18.2%), the worst weekly drop, in percentage , in the company’s database dating back to 1901.

“The term ‘Octoberphobia’ has been used to describe the phenomenon of major market declines occurring during the month,” Stock Trader’s Almanac said. “Market calamities can become a self-fulfilling prophecy, so stay tuned and don’t be fooled if it happens.”

While there may be a grim history of stock market crashes during the month, overall October was a good month, history shows. For the past 21 years, the entire month of October has been a solid month for the market, ranking No. 3 for DJIA, , and , the Almanac notes.

“October was a turnaround month – a ‘bear killer’ if you will,” notes the Almanac. “Twelve postwar bear markets ended in October: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, 2002 and 2011 (the S&P 500 fell 19.4% ). Eight of those years were mid-term lows.”

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