October Is a Spooky Month for Stocks

Market crashes from decades ago come back to haunt investors’ thoughts every time the leaves start turning.

photo of Jim Stack
(Image credit: Photo by Trevon Baker, courtesy Investech Research)

James Stack is a market historian, investment adviser and president of InvesTech Research, an investment newsletter with its home on the shores of Whitefish Lake, Mont., a world away from Wall Street.

After October stock market crashes in 1929 and 1987 and the October 2008 meltdown during the financial crisis, Wall Street gets the jitters this time of year. Why do past “Shock-tobers” still cause fear? I also recall 1978 and 1979 having October mini-crashettes. But it was Black Monday in 1987 [when the Dow Jones industrial average fell 23%] that cemented October’s reputation as a bad month for investors. Ever since then, whenever October nears, it brings back fears.

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Contributing Writer