5. The October Effect
Whether it’s coincidence or not, investors and brokers get nervous in the month of October because the worst stock market crashes occurred during this time.
On October 29, 1929, the first devastating stock market crash occurred. Stocks plummeted 25 percent over a few days, sending investors into a panic. It began with the London Stock Exchange crash the month before, and continued with a volatile market and frantic selling of stocks. This led to the Great Depression of the 1930s, which lasted a decade.
On Monday, October 19, 1987, the world markets began crashing and by the end of the month, markets had dropped huge percentage points – almost 46 percent in Hong Kong, more than 26 percent in the United Kingdom and nearly 23 percent in the United States. Additionally, markets dropped in 2002 and 2008 as well.
6. Pirate Stock Exchange
7. On Average, the Market Performs the Poorest in September!
Since 1950, the Dow has declined 1.1% and the S&P 500 has declined 0.7% on average during the month of September. Since the Nasdaq was created in 1971, its composite index has fallen an average of 1% in September.
8. From 1980 to 2010, $10,000 would be worth…
* $234,319 in Australian shares, a return of 11.1% per annum.
* $145,040 in cash, a return of 9.3% per annum
* $36,383 in the Consumer Price Index (CPI), a return of 4.4% per annum.