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Bearish September

It is quite evident that the Bearish September is taking its effect as the stock market was quite weak over the last 2 weeks. But here’s the important question - is this a start of something more serious?

The Federal Reserve’s higher-for-longer interest rates approach isn’t new, but all of sudden, people are talking about the increasing risk of a recession again.
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  • RDK79 : … and let’s not forget Oct doesn’t have a good history, regardless of the reasons developed.

  • jean yang RDK79 : Travel stocks will rise to varying degrees in October

  • Chris Ivan Ang RDK79 : Actually. September has always been bad for the last 10 years barring 2 outlier years. And October Vice Versa 😁

  • RDK79 : Good to know! Thanks for clarifying!
    Found this on investopedia:

    October also has a special place in finance. Associated with the October effect, it's one of the most feared months in the financial calendar. Let's have a look at whether there's any merit behind the fear. The events that have given October a bad name span over 100 years.

    KEY TAKEAWAYS
    The October effect refers to the psychological anticipation that financial declines and stock market crashes are more likely to occur during this month than any other month.
    The Bank Panic of 1907, the Stock Market Crash of 1929, and Black Monday 1987 all happened during the month of October.
    Historically speaking, however, September has had more down markets than October.
    The psychological effect that causes some traders to blame October for stock market declines may actually make it one of the better buying opportunities for contrarian investors.

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