The October Effect

Historically September is the worst month for the stock market… but October… well that is a different story.

September is historically the worst month in the stock market, dated back to 1945. Obviously this is just an average and can change anytime, but seems to hold true historically. Firstly, if you made it through September 2023, congrats. Now, let’s focus on The October Effect…

We know September is BAD for the stock market historically, but what about October?

Since 1945, October has been a very positive month. After the red red red of September, The October Effect is real. Look at the graph including October:

What does this tell us? Well, if we can last through The September Effect, we can enjoy the (historically) positive returns in The October Effect. But don’t worry, it gets even better…

Not only (historically) does October have a good month, so does November and December…

So if you can make it through the not-so-fun September, at least historically, you can enjoy the positive returns for the last 3 months of the year.

What does this tell us?

  1. Judging your investments off 1 month returns is dumb.

  2. Historically the stock market is not great in September, but if you don’t panic sell, you have a good chance of recovery for the rest of the year.

  3. If you buy & hold, you should never freak out with short term fluctuations in the stock market.

The S&P 500 in September 2023 = -5.04%

The S&P 500 in October (so far) = +0.85%

The October Effect is happening (so far). However, doesn’t mean it will end the month green. But what I do know is this: I will keep buying and holding every single week.

P.S. Happy Friday the 13th! 👻

If you want to learn how to make $100s or even $1,000s every week selling options, 5 people can get my $50 video course for just $35 (or 30% off). My guarantee is if you do not make $35 back in 1 month following my lessons, I will refund you. (Discount code already applied):

My Buys This Week:

ETFs: $250 in VOO +

(x)Tweet of the Week:

One thing I do is put my money to WORK!

Thank you so much for reading & I will see you next week! Until then, keep buying assets & stacking those dividends. 🙂 

- Decade Investor

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