Many people have never heard of the October Effect. Yet, it’s almost as well-known as the September Effect, another theory about market performance based on superstition. But what is it?
According to Investopedia:
The October effect is a theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological expectation rather than an actual phenomenon as most statistics go against the theory.
Nevertheless, many investors still get nervous about having their money in the stock market during the month when some very large historical crashes have occurred. October has certainly earned its reputation for being a bad month for the market. Just look at the dates for the Panic of 1907, Black Tuesday (1929), Black Thursday (1929), Black Monday (1929), and Black Monday (1987).
The September Effect is similar, as is the January Effect, the Super Bowl Effect, the Hemline Effect, and the Curse of the Tallest Skyscraper effect. Granted, many unfortunate market events have happened to coincide with each of these phenomena. But dig a little deeper and experts tell us there is no factual basis to any of these superstitions. To read more– and if you’re a Safe Harbor Financial Services client, have a good laugh– check out this article:
To learn how to shield your retirement portfolio from ANY market effect, while still earning market-like returns, give us a call and ask for your complimentary consultation. Jim Byrd and his expert team will review your retirement portfolio, check it for risk and return, help you formulate a long term plan for your retirement, and give you some extremely low-risk options that you won’t hear about anyplace else. It is all without any cost or obligation. To learn more, consider attending one of our free financial seminars this month. We invite you and your spouse or a friend to dinner on us and an enjoyable evening learning how to preserve and grow your retirement account in these volatile times. Contact us here or call the Safe Harbor Financial office at 251-625-1226.