Last week marked the 30th anniversary of Black Monday – October 19, 1987 – when the market crashed 23% in a single day .
In October 1929, The Great Depression kicked-off with a 25% crash over two days.
In October 2008, The Great Recession officially began with a 13% drop.
If I ran a financial newspaper, website or TV show, I’d run headlines about how scary investing in October is.
What I wouldn’t run a headline about is the average return in October is 0.5%.
You also wouldn’t see any headlines about how November through April usually returns 7.1% while May through October returns 1.4% which means the best month to invest is October.
I wouldn’t run those headlines because those headlines don’t sell advertising.
Scary, ominous headlines do.
Financial media are masters at Treat and Trick. They treat you with “brain candy” that stirs your emotions, which is really just a trick to sell advertising.
The takeaway? Consider the source.
