Kids and kids at heart look forward to Halloween and getting scared out of their wits. That’s just fun and games. But October is also typically a very scary month for investors.
So, are you scared yet? It’s October, and once again the stock market is taking a plunge.
October has been one of the most frightening, horrendous months of the year for the stock market and those who invest in it. The first big drop came in 1907, followed by the big crash of 1929 on October 24th. Then there was Black Monday on October 19,1987. Then a mini crash on October 13, 1989. Another in 1997, 2002 and 2007. And those are just the October events!
This year is no exception! Earlier this week the Dow Jones fell more than 800 points. That’s the third biggest drop in its history. And yesterday, it plummeted another 500 points. Are you scared yet?
Halloween and the horror of stock market crashes seem to go hand-in-hand. But, if you have been smart and keep your investments diversified between Short-Term Safe Accounts and leave Stocks in your longer-term accounts, you have no reason to be spooked. It’s really just business as usual. You don’t have to wonder what’s causing the fluctuations, nor do you have to call you broker with a “sell” order. Just sit tight.
On the other hand, if you are not diversified, then you will have every reason to be terrified. If you make it through the terror, you might want to reevaluate your investment strategy.
If you want a free portfolio evaluation and stress test, give me a call.