The election calendar, seasonality, and history of bear markets all point to an October bottom for the stock market. In election years, October often marks the start of the rally after a volatile first three quarters of the year. Since the start of the S&P 500 in the 1920’s, the fourth quarter of a Presidential election year has always posted a gain with only two exceptions, 2000 and 1932. Often called the "bear killer" by market historians, more than half of the declines associated with recessions and bear markets since WWII ended in the month of October. The market plunge in September and October was dramatic, and it became deeply oversold on a technical basis and very undervalued on a fundamental basis; however, the market needs a trigger to unlock these conditions and begin a really.
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