As we head into the 4th quarter we wanted to look at the potential for the year end. Historically, October has been associated with volatility. In fact, since 1950 October ranks as the most volatile month with the highest draw down and draw up of any month. From a return perspective, October ranks in the middle of the pack.
When we look at the daily trend for October it starts slow but finishes strong. Below is the average daily trend for October for the last 20 years.
In prior posts we have talked about how a strong start to the year typically is followed by strength till year-end. However, a tweet by Ryan Detrick shows how the next few months could be choppy.
Just wanted to highlight the potential for an increase in volatility as we head into the 4th quarter.
