Stock traders almanac: October is historically a “bear market killer”

Per Jeff Hirsch- editor of the stock traders almanac:

“October has been a turnaround month—a “bear killer” if you will. Twelve post-WWII bear markets have ended in October: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, 2002 and 2011 (S&P 500 declined 19.4%). Seven of these years were midterm bottoms.

The fourth quarter of the midterm years combines with the first and second quarters of the pre-election years for the best three consecutive quarter span for the market, averaging 19.3% for the DJIA and 20.0% for the S&P 500 (since 1949), and an amazing 29.3% for NASDAQ (since 1971).”

Lots of historical catalysts are arriving soon: midterm elections, the 4th quarter “Santa Rally”, the 3rd year of a presidency, and a potential end to interest rate hikes.