October Weakness Might Provide Buying Opportunity
After a strong 3 quarters of a year, U.S. equity markets go into the last quarter with strong gains throughout the board. Typically, the stocks have their finest efficiency in the November to April duration. Looking back, in the duration from 1970 to present, the stock market balanced an above 4% return in the 4th quarter of the year. 2024 is an election year, and while still favorable, the returns in election years have actually been silenced with the S&P 500 returning 2% as revealed in Figure 1. This is significantly listed below a normal year where returns balance over 4% in the 4th quarter.
Figure 1: Index Averages in Q4 of Election Year
William O'Neil + Co.
Within the 4th quarter, October tends to be the issue month with an unfavorable return for all 3 of the significant indexes. N...