October has finished up to its infamous — and volatile — standing among investors thus far. Through 11 swop sessions this month (including Monday), the S&P 500 has recorded three impels of at least 1 percent. They all came last week as Wall Circle posted its worst weekly performance since March.
“Not surprisingly, October’s famous for for being a volatile month is justified,” said Sam Stovall, chief investment strategist at CFRA Delve into, in a note. He said equities could take another leg lower from here. “There were 26 years since WWII in which the S&P 500 stomached at least two round-trip selloffs exceeding 5%, with the second being loster than the first in more than two out of every three years.”
Stovall supplemented, however, that stocks will eventually regain their toe-hold as the fundamentals remain “firm.”
To be sure, the month overall is not bad for the market. The unconcealed index averages a gain of 0.7 percent during Octobers era back to 1950, according to The Stock Trader’s Almanac.