Summary
October is expected to continue being a strong month for stock investors, as the fourth quarter often brings stock market growth. Historically, the final quarter of the year shows positive results, and this year, stocks have already shown unexpected gains despite usual seasonal weaknesses.
Key Facts
- The fourth quarter is typically the best for stock performance, showing growth 80% of the time since 1950.
- Historically, the average stock gain in the fourth quarter is 4.2%, almost double the first quarter's average gain of 2.2%.
- The S&P 500 index increased in September, marking its fifth month of gains.
- Although usual weaknesses in fall did not occur, some investors express concern about potential complacency risks.
- Market challenges include evolving tariffs, labor market weaknesses, and slowing growth in Big Tech earnings.
- Despite warnings of potential market volatility, stock prices continue to rise.
- Portfolio managers are encouraged to stay in the market to match the S&P 500's performance.
