October is unfairly known for jinxes and crashes for the S&P 500, Matt Krantz writes for Investor’s Business Daily, but stock prices of Apple and Microsoft show “much of the fear of the tenth month of the year is overblown.”
Matt Krantz for Investor’s Business Daily:
More than half the stocks that routinely outpace the S&P 500 in October are in the information technology sector. And good news for Apple and Microsoft stock is important, given just how much of the S&P 500 is riding on those two stocks.
“Looking ahead to October, seasonal trends go back to favoring bulls,” said Bespoke Investment Group. Markets tend to rise in October over the past 100 years, Bespoke finds.
There’s good reason for investors to fear September. But October unfairly gets a bad rap, too. Sure, October is infamous for crashes in 1929, 1987 and 1997 not to mention 2008. But October is actually the month that tends to put a stake through bear markets’ hearts, says “The Stock Trader’s Almanac.” October snuffed out 12 bear markets since World War II.
Microsoft’s stock gained 6.2%, on average, in October the last five years… Meanwhile, Apple is an October champ, too, never lagging the S&P 500 in that month for the past five years. It gained 5.3%, on average, in October the past five years. Just last year, Apple stock jumped 11.1% in October.
MacDailyNews Take: Well, this is an October like none other, so fingers crossed!