The fact that market "panics," to use the 19th Century term, almost all start in the Fall, was observed two hundred years ago. I hope we don't have (another) huge drop in the stock market. But it is more likely to happen in the net 60 days, than at any other time in the next year.
Five Biggest One Day Point Losses for the DJIA
1. 9/29/2008 -> -777.68 (meltdown after bailout fails to pass House)
2. 9/17/2001 -> -684.81 (first full day of trading after 9/11)
3. 10/09/2008 -> -678.91 (fear completely gripping the markets)
4. 4/14/2000 -> -617.78 (the Dot Com bubble is popping)
5. 10/27/1997 -> -554.26 (Asian stock market crisis)
Five Biggest One Day Losses for the Dow Jones Industry Average (as a %):
1. 10/19/1987 -> -22.61% (Stock Market Crash of 1987)
2. 10/28/1929 -> -12.82%
3. 10/29/1929 -> -11.73%
4. 11/06/1929 -> -9.92%
5. 12/18/1899 -> -8.72%
(Note: I'm not sure how old this data is)
So then, I should replace the maxim “Sell in May and go away” with the maxim “Sell in the fall! SELL IT ALL!!!”
:-)
kinda sounds like Dr. Seuss, eh?
(Note, I’m not sure how old this data is)
At least back to 12/18/1899:)