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Yielding Wealth | Personal Finance

Will the Stock Market Crash This Month?

by miranda on October 4th, 2007

With stock market going fairly strong right now, some investors are wondering whether the party will continue. Consider this on the October stock market from MarketWatch:

Watch the October stock market

October has the reputation as being the scariest month of the year and not because it is the home to Halloween. All of the really big market plunges — 1929, 1987 and even the mini-smashes of 1989, 2000 and 2002 — all happened in this month so investors are understandably concerned.

But all is not lost. It is also worth considering that in the yearly stock market cycle, the best time of the year is November through April. That’s right. The big retail holidays of Halloween (it IS at the end of the month, after all), Thanksgiving, Christmas (Christmas! Christmas!), New Year’s, Valentine’s Day and Easter all fall in that window. So the stock market is usually supported by the spending masses.

But will that still be the case in the current credit market crunch? Indications are that consumers are hanging back a bit, especially those feeling the squeeze from resetting mortgages and other credit market crash issues.

While a huge stock market crash isn’t THAT likely, a dip or a correction wouldn’t be a surprise. And if you are there to get in on some of the bargains, you may see good results down the road.

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POSTED IN: Investing, Personal Finance

2 opinions for Will the Stock Market Crash This Month?

  • av19sc
    Oct 14, 2007 at 5:01 pm

    HUH!!!
    I don’t agree with what you think because you can’t base your judgement on superstition and i think that this can not be predicted. You can indeed learn lesson from the past (the 1929 and the 1987 Stock Market Crash) but that’s all. Economy is not like fashion it doesnt come back back every 20 years!
    “A stock market panic is of course a chaotic event (in the sense of Chaos Theory), and so cannot be predicted. All that can be done is to provide the probability of a stock market crash within a given range of time.” (http://www.generationaldynamics.com/cgi-bin/D.PL?d=ww2010.i.060530panic)
    However i am 90% sure that a stock market crash will happened. When? That is the question!!!

  • Warren Buffet
    Oct 20, 2007 at 12:55 pm

    SHARE MARKET IN OCT WILL CRASH - BEWARE, ACCORDING TO THE VIX INDEX IT SHOWS A SUDDEN SURGE IN COMPARISON TO 2001 APRIL AND 1997 -98 SHARE CRASH.

    SELL ALL YOUR SHARES NOW . ACT FAST

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