STOCK MARKET TODAY: 𝑶𝒄𝒕𝒐𝒃𝒆𝒓, 𝒂 𝒔𝒑𝒐𝒐𝒌𝒚 𝒎𝒐𝒏𝒕𝒉 𝒇𝒐𝒓 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔?

October is known for some spectacular crashes and many expect bad things to happen again this year, but the truth is this month is simply misunderstood, as historically it is about an average month

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October was placed as one of the most feared months in the financial calendar due to its October Effect. But is it really a spooky month for the investors?

According to Investopedia, October Effect refers to the psychological anticipation that financial declines and stock market crashes are more likely to occur during this month than any other month.

While some investors may think that October being the Halloween Month is an unfruitful time for their investments following September, it is just simply misunderstood by many. As Ryan Detrick of LPL Financial said, “October is known for some spectacular crashes and many expect bad things to happen again this year, but the truth is this month is simply misunderstood, as historically it is about an average month.” It is not one of the best months of the year but is not the worst, either.

October has been looked at differently by the investors due to the historical stock market crashes which happen mostly this month. The Bank Panic of 1907 which was a short-lived bank and financial crisis that threatened to engulf Wall Street. The Stock Market Crash of 1929, the time that several people invested their money in the stock market which led to its crash. Lastly, the Black Monday 1987, the time that stockbrokers from other cities stared at the figures that indicates sell orders piled upon sell orders, sensing the dread that is currently surfacing.

These occurrences may have happened this month, but these can be delayed reactions from the down markets during September that was proven to be the worst month of the year in the stock market according to the Dow Jones Industrial Average.

Should we take investment beliefs seriously or not, what’s important is it’s OctoVERY good to start investing as early as we can, but always keep in mind to ask ourselves if we are already financially prepared.

There is no such thing as worst months or superstitions that should hinder us from a financially stable tomorrow.

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Photos from Pexels, Wall Street, Quartz and Dow Jones