The final three months of every calendar year should theoretically be a great time of year for the stock market. It is the time of year when consumers spend the most money. That in turn means businesses are selling the most stuff. And when the two are combined, it means the economy should grow the most.
But, at the end of the first month of the final quarter of every year, investors also have to deal with Halloween. And that’s the time of year that news outlets love to out-scare each other with their dire end-of-year market predictions. Just type “October Market Spook” into Google if you’re having trouble sleeping at night.
Making matters worse, most investors also remember the fourth quarter of last year. And make no mistake, it was a quarter that certainly spooked investors.