With the S&P 500 nearing 5900 points and a history of significant stock market crashes or declines in October (1929, 1987, 1989, 1997, and 2008), many are wondering if this month's peak will be the highest of the year.
According to research from the firm 3Fourteen, since 1950, only 8% of S&P 500 peaks have occurred in October. In contrast, 56% of annual highs have been reached in December (40%) or January (16%).
Given that the index is currently near its historical high, this suggests that December could be the most likely month for the year's peak, hinting at a strong end to the year.
The financial community will be closely watching this statistic, especially as the markets enter a period of uncertainty marked by the outcome of the U.S. presidential election and, more importantly, investors' reactions to the results.
If a significant correction occurs, many will take the opportunity to increase their exposure to equities.
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