Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much, Brandy.
Brandy Auterson-Hurst:
So we’re into October now and this month has a reputation as a scary one for the stock market. Would you say that reputation is deserved?
David Nelson:
Yeah. It certainly has a reputation and some of the numbers I brought along today, I’ll share with folks. But we look at the month as a whole and say that there’s been some pretty substantial crashes that have taken place as far as during the month of October. Great Depression being one of them as far as October during the ’20s there, the crash of ’87, and then the worst was 2008, the financial crises.
My chart that I have today, nice visual. Blue basically is illustrating as far as… Each one of these entries is a year, so we’re going back to the ’50s and the blue represents months where things worked and the market went up. And then, the red ones just really jump out at you as far as a couple of them. That’s when the markets have been down.
’87 in particular, you can see there this massive move down, that’s a 22% drop as far as in a month. Then fast-forward to ’08, that was a 17% drop. But as a whole, what we see is that 59% of the months have actually been up, but the ones that are eye-catching obviously, certainly, would be ’87 and 2008. Again, you take a 15, 20% hit in a month, that’s pretty devastating.
Brandy Auterson-Hurst:
Okay. So what should investors take away from that this October?
David Nelson:
Well, don’t let just this monthly issue as far as looking at calendars make your decisions for you. There is a whole bunch that should go into it, but certainly you can’t ignore as far as past history and October being a pretty volatile month.
Brandy Auterson-Hurst:
All right, David. As always, thanks for joining us.
Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.