Should Investors Worry About the "October Effect?" History Offers a Compelling Answer.

The tough times that have happened in October are enough to scare off anyone. From the panic of 1907 to Black Tuesday of 1929 and, more recently, Black Monday of 1987, the month of October has been ripe with financial crises and market crashes over time. And that's led investors to talk about the "October effect," the idea that stocks are likely to decline during this month.This may worry some investors right now, especially as valuations of S&P 500 companies have climbed -- along with the index, which recently reached a record high. The benchmark finished September, a month that's also been associated with stock market declines, on a positive note, gaining 3.5%, and this puts it on track for an annual increase of 14%.But will the October effect interrupt this positive story? History offers a compelling answer.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool