October: This is one of the peculiarly dangerous months to speculate in stocks…
Now that we are in the month of October, I thought it timely to remind you of Mark Twain’s warning.
Many investors are worried about the share market in October. The Great Depression followed the Wall Street stock market crash in October 1929. Then there was the 1987 crash that also started in October. These crashes may be responsible for the “October Effect” – a perceived market anomaly that stocks tend to decline during the month of October.
Interestingly, September is responsible for more market crashes than October and many share market rallies have started in October.
So, let me give you the full Mark Twain quote:
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
What Mark is saying is that there is never a good time to speculate in shares (or other investments).
Speculation should have no place in your financial plans.
Instead, based on your objectives, let’s work together on ensuring you have the right structures and strategies in place. Then, and only then, let’s put together a logical, structured and diversified portfolio of investments that will work for you in different market conditions (including during Octobers) to help you achieve what is important to you.
Written by Bruce Chisholm
Financial Planner – Highview Accounting & Financial
Authorised Representative No. 1235025 of InterPrac Financial Planning Pty Ltd Licence No. 246638 Highview Wealth Solutions Pty Ltd Trading as Highview Accounting & Financial
DISCLAIMER: Bruce has written his article for general information purposes only and it does not constitute personal advice. This information has been prepared without considering any individual’s objectives, financial situation or needs. You should not act solely on the basis of material contained in this article. We recommend that formal advice is sought which considers all your individual objectives and needs.
 Investopedia: https://www.investopedia.com/terms/o/octobereffect.asp