October the worst month for the stock market: The Truth of It All

October the worst month for the stock market: The Truth of It All

Statistics show that October the worst month for the stock market affairs, followed by November, December, January. There are no good or bad months to deal with equities.

There are positive and negative trends, although, yes, from a statistical point of view October is a bad month and January is one of the best.

Those of us who follow the day to day of the Stock Market frequently go to appointments and statistics to justify something that is not always justifiable.

For example, what are the periods of initiation of investment in the Stock Market, that is, when the cash flows begin to enter the market and which are the maturation periods, or what is the same, when the money leaves the rooms in search for a more comfortable retreat.

stock market

It has been said that October, due to the coincidence of the most important crashes in history, is one of the worst months to invest in the Stock Market and that from Saint Lucia to San José is the best time.

In October, the largest cash withdrawals from the markets would converge and as of December 13 (Saint Lucia) the inverse movement would begin, that of the entry of funds, the peak period of which would be in San José.


Do not forget, in any case, that in October 1987 the Spanish Stock Exchange collapsed, in a process that lasted several weeks. On October 10, 2008, the Ibex registered a 9.1% drop, the largest intraday drop in its history.

On October 19, 1987, the Dow Jones fell 22.6%, also the largest intraday decline in its history. The biggest crashes in the history of the Stock Market have always occurred in October.

That is why October is not a good month for the stock market. The day after these events has confirmed that the crashes have been great opportunities to enter the market.

Take the calendar for a second and look at the months from October to May. Now point them out, because it is the most interesting period to get into the park.

Don’t know what you think? Well, look at the historical data. Analyses the main index in the world, the Standard & Poor’s 500, which has risen by an average of 7.5 percent between October and May of the last 50 years.

However, if you analyse the period from May to October you can see that on average does not earn more than 1 percent. Specifically, the average stands at 0.84 percent.