Buy The Dip - October Is Usually Good To Investors!
The last 21 months has been a financial âroller coasterâ! Many of the broader stock market benchmarks finished September with mediocre results for 2023 and nowhere near their all-time highs set in 2021.ăăBeleaguered investors are looking for time-tested guidance, especially as we face the infamous month of October with its history of bear market declines in 1929, 1987 & 2008.ăăHistory supports the fact that the Fall & Winter months usually produce powerful rallies. In fact, the financial media has lots of colorful phrases to describe stock market seasonality, but one that seems to come true is, âThe Santa Claus Rallyâ as the holiday season typically posts strong results.ăăThis well-known technical analysis is commonly defined as the stock marketâs typical price movement through different periods of time not particularly tied to a calendar year or economic conditions. Itâs largely based on the theory that current stock market momentum feeds trends in the future!ăăFor decades, market forecasters have observed that during the eight months of October through the following May, the stock market posts significant rallies while the âdog daysâ of Summer (June to September) are volatile and trendless!ăăMarket analysis should be tested over a long period of time, in different economic