October's History of Volatility

October is often seen as a volatile month for U.S. stocks due to historical crashes, but it also has the potential for significant gains. The month is known for its high standard deviation in returns and is often a turning point for bear markets and corrections. October's performance is influenced by its position as the start of the fourth quarter and its proximity to U.S. elections, which have historically seen market declines. The upcoming earnings season is expected to show a 24% decline in S&P 500 earnings across all sectors.

Why is October often viewed negatively by U.S. stock investors?

• Because it is a holiday season

• As it marks the end of the fiscal year

• Because of historical market crashes

• Due to consistent market growth

What is the significance of October's volatility according to Sam Stovall?

• It is the least volatile month

• It is the most stable month

• It has the lowest standard deviation of returns

• It has the highest standard deviation of returns

What is October known for in terms of market trends?

• A capitulation month

• A month of high dividends

• A month of consistent growth

• A month of minimal changes

How does the fourth quarter typically affect U.S. equities?

• It leads to a market crash

• It is usually a weak period

• It is seasonally a strong period

• It has no significant impact

What challenge is highlighted for the upcoming earnings season?

• Expected growth in all sectors

• Stability in S&P 500 earnings

• Declines across all 11 sectors

• Increase in fiscal stimulus