October Effect

October Effect

A calendar effect in which the stock market declines in October. There is little evidence that the October effect is real, but some investors still fear it because the 1929 crash and the 1987 crash both occurred in October.
References in periodicals archive ?
AFTER the crash of 1987, a "regularity" of stock market behaviour was popularised in the form of a negative October effect.
While the general pattern of seasonality effects differs across indices, a positive January effect, negative August and October effect were found in all index return series for several subperiods.
While the positive January effect was mirrored in the MRI, the negative October effect was replaced by a negative August effect.
Positive January and negative October effects are most pronounced in the REITs indices, weak complementing evidence is also found in the S&P 500 stock index.