Trading opportunities amid the “October Effect”.
October isn’t just about the spooky things we do for Halloween. It can be a scary time for markets too. Ever heard of the Panic of 1907? What about 1929’s Black Tuesday? Or the infamous Black Monday from 1987? These were some of the largest market crashes in history. And they all occurred in the month of October. Even during the Great Financial Crisis, the S&P 500 saw a dramatic drop of nearly 17 percent in October 2008, which was the biggest monthly loss for the stock index since October 1987.
Going into October 2020, global investors are now faced with a plethora of risks. Major economies are still struggling to get a handle on the pandemic, geopolitical tensions are threatening to boil over, and global investors are growing concerned over the US Presidential Elections that’s just a few weeks out. Are such fears founded or overblown? Let our in-house analysts, Lukman and Han, guide you through the potential market scenarios that may unfold this month, and how it could impact various assets such as the S&P 500, the US Dollar, and Gold.