November 1, 2018
This was an October that many of us will never forget.
The month of October is typically the most volatile month of the year for stocks, and that was definitely the case in 2018. It was the worst month for the S&P 500 in 7 years, and it was the worst month for the Nasdaq in almost 10 years. But the damage could have been much worse if we had not seen a bounce the last two trading days of the month. On Wednesday, the Dow Jones Industrial Average was up 241 points, and investors are hoping that this is a sign that things are starting to settle down a bit. And hopefully things will be calmer in November, because things were so chaotic in October that the month has already been branded “Red October” by the mainstream media…
Wall Street finally bid good riddance to what one professional stock investor dubbed “Red October.”
In a tumultuous month marked by big price swings, rising fear levels and emerging risks, the U.S. stock market suffered its biggest October decline since the 2008 financial crisis, prompting shaken investors to reassess the staying power of a bull run that began more than nine years ago.
When we go back and look at the month as a whole, the damage is breathtaking.
Here is a summary of the carnage that we witnessed…
-October was the worst month for the S&P 500 since September 2011.
-October was the worst month for the Nasdaq since November 2008.
–Nearly 2 trillion dollars in U.S. stock market wealth was wiped out.
-Overall, approximately 8 trillion dollars in global stock market wealth was wiped out.
-October was the worst month ever for the “FANG” stocks.
-Facebook was down 7.7 percent.
-Alphabet (the parent company of Google) was down 9.7 percent.
-Netflix was down 19.3 percent.
-Amazon was down 20.2 percent.
-Global systemically important bank stocks were down more than 10 percent.
To me, one…