October Effect- month of stock market panic

It turns out not only humans and animals suffer psychosomatic trauma effects, so does the stock market. The market in the past century has suffered repetitive overwhelming crushes in the month of October that has led to serious, long-term negative consequences.

Diagram showing the last week panic 

September and October has notoriously became a short period of panic selling. Since the greatest depression of October 1929, the Stock market has had the ability to store, retain, and subsequently retrieved the extreme distressing financial losses that caused severe emotional grief to countless investors.

88 years is a very long time but still the market seems not to forget, investors still panic. Last week Dow Jones Industrial dropped by 800 points, could have this be caused by the rise in bond yields, 10 year treasury note, or just because its the month of October, we can never know.

Pundits have in the past pointed out that "October effect is just a psychological expectation rather than actual phenomenal as most statistics go against it, in a way it would be wonderful for investors if financial disasters, panics, and crashes chose to occur only on one month of the year"(sic).

The Prestige Group Network