Stock-market turnaround? Why October is known as a ‘bear killer.’

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While September has lived up to its reputation as a brutal month for stocks, October tends to be a “bear-market killer”, known for its historically strong returns, especially during midterm election years. Will this October be the same?

While September lived up to its reputation as a brutal month for stocks, October tends to be a “bear-market killer,” associated with historically strong returns, especially in midterm election years.

The indexes had booked modest gains in the first half of the month after investors fully priced in a large interest-rate hike at the FOMC meeting late September as August’s inflation data showed little sign of easing price pressures. However, the central bank’s more-hawkish-than-expected stance caused stocks to give up all those early September gains. The Dow entered its first bear market since March 2020 in the last week of the month, while the benchmark S&P slid to another 2022 low.

Skeptics aren’t convinced the pattern will hold true this October. Ralph Bassett, head of investments at Abrdn, an asset-management firm based in Scotland, said these dynamics could only play out in “more normalized years.” Strategists at Stifel, a wealth-management firm, contend the S&P 500, which has fallen more than 23% from its Jan. 3 record finish, is in a bottoming process. They see positive catalysts between the fourth quarter of 2022 and the start of 2023 as Fed policy plus S&P 500 negative seasonality are headwinds that should subside by then.

 

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October 2008 looks cute way down there doesn't it? And check out September 2008 too.

October 2008. Doesn't it look cute way down there? The current misery just began today. Sheeple be too busy with their monetary gains over the past 13 years to be bothered to notice. Gonna sneak up on 'em like the shark in Jaws. Take 'em under for a lil snack.

No Armageddon is coming are you prepared?

If Cramer says sell then we will have a bull run in October.

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