The term October effect is used to describe a theory that states financial markets typically decline in the month of October. The October effect is believed to be a result of the psychological impact the stock market crashes of 1929 and 1987 have on investors.
Financial markets, such as commodities, bonds, and stocks, typically demonstrate an upward or downward trend over time. The October effect is a hypothesis that states financial markets in general, and stocks in particular, typically decline in the month of October.
The October effect is a psychological phenomenon, and is likely a result of the stock market crashes of 1929 and 1987. The stock market also declined in October of 2008, which marked the start of the Great Recession. Empirical evidence suggests September actually provides investors with the worst returns. For example, over the 50-year period from January 1960 through December 2009, the S&P 500 Index provided investors with a -0.90% return. The month of October provided investors with a return of 0.51%. In fact, the S&P 500 rose 31 times in the month of October and declined only 19 times.
January effect, gray swan event, technical rally, tortoise rally, Santa Claus rally
Explore Investing Further
Trading has never been easier, thanks to the rise of online platforms that enable you to buy and sell various assets at the click of a button. But with so many options available, it can be challenging to decide which platform is right for you.
Looking for a way to avoid swap fees while trading forex?
Below listed are the small reviews of the top 10 ETF brokers available across the United States.
Our top beginner's pick for copy trading is eToro. Read on for more details, plus seven good alternatives.
Swing trading stocks can be a great way for investors to take advantage of short-term stock market movements and gain significant returns. If you're interested in swing trading, the key to success lies in selecting the right stocks to buy and sell quickly for a profit.
The table below lists the best stock picks under $2, listed on public exchanges.
The table below lists the best stock picks under $1, listed both on public and OTC exchanges.
This section will highlight the best EV-trading penny stocks available in the United States.
The demand for sustainable energy has grown rapidly in recent years. This has resulted in increased scrutiny of the automotive market. As a result, the electric vehicle (EV) industry has made significant advancements.
Intelligent Bio Solutions Inc. is a life sciences company, founded in 2016 with headquarters in New York and is engaged in performing diagnostic tests, real-time monitoring, and non-invasive surgery for its patients. The firm has developed a CoV-2 Biosensor, which can be used in RNA virus detection.
Hour Loop was founded in 2013 with headquarters in Redmond, Washington. It’s an online retailer involved in e-commerce in the United States that hit the public markets on Jan 7th of 2022. The company sells home/garden decor, electronic products, kitchenware, and apparel through walmart.com, amazon.com, and hourloop.com.
.jpg)
