There is an old saying form, Baron Rothschild, that: “the time to buy is when there’s blood in the streets.” – he should know since he made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon…
The month of October was a problematic month throughout history:
- The Panic of 1907 (October 1907).
A financial panic threatened to engulf Wall Street, mostly owing to threats of legislative action against trusts and shrinking credit. There were multiple bank runs and heavy panic selling at the stock exchange. All that stood between the U.S. and a serious crash was a J.P. Morgan led consortium that did the work of the Fed before the Fed existed.
- Black Tuesday, Thursday and Monday (October 1929).
The Crash of 1929 was bloodletting on an unprecedented scale because so many more people were involved in the market. It left several “black” days in the history books, each with their own record-breaking slides. (For more, see The Crash Of 1929 – Could It Happen Again?)
- Black Monday (October 1987).
Nothing says Monday like a financial meltdown. In 1987, automatic stop-loss orders and financial contagion gave the market a thorough throttling as a domino effect echoed across the world. The Fed and other central banks intervened and the Dow recovered from the 22% drop quite rapidly. (See What Is Black Monday? for more.)
- 1997 October 27 Global financial crash due to a financial crisis in Asia
- On Friday, October 24, stock markets plummeted worldwide amidst growing fears among investors that a deep global recession is imminent if not already settled in. … Following the trend, the US stock markets also fell sharply on opening and ended with the Dow Industrial Index down 312 points.
Till June 2009, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 all experienced declines of greater than 20% from their peaks in late 2007. October is the most known month for historical Financial Crisis – will this month be different? – If there will be blood – will you be ready to buy then???
As the month progresses and the earnings season gets on its way, elections expected 11/4 and rising Interest rates in the U.S – We should expect a lot of movement.
The Dollar keeps getting stronger and stronger against a verity of currencies around the world:
EUR/USD – Keeps getting weaker against the Dollar as the end of the stimulant program in the Eurozone is reaching its end and the Federal bank keeps raising rates when one more is expected(by the majority of the FOMC) in December.
GBP/USD – also follows the EUR and continues to drop against the U.S Dollar – and the trend continues…
Oil – Continues to rise for the long term and shows some temporary weakness after the end of last week and now has the technical potential to drop towards the stated rates below:
Earnings season – https://markets.businessinsider.com/earnings-calendar
Some of the more highlighted opportunities are the ones which were on the winning side through the past years such as – Amazon, Apple, Google, Facebook, Netflix.
All of these stocks are expected to suffer weakness in an environment of rising interest rates – since people will pay more to the banks and have less to spend of consumption – they will be the first to take the hit – and it started last week and as long as interest rates continue the way they are – the trend continues..
It will be interesting so stay tuned – more to come…
