October is a tough month for stocks. On average, September is worse… but the big crashes come in October. Today marks the 91st anniversary of Black Tuesday. On this day in 1929, the Dow crashed 12 percent, one of the largest one-day drops in history. But it wasn’t isolated to one day, like the Crash of ’87.
That kind of drop puts yesterday’s decline in perspective. Of course, today there are a wider group of investors, with nearly half of all Americans with some skin in the great game. And many investors are passive, buying up assets in 401(k) and other tax-deferred plans in small amounts on a biweekly basis. But thanks to those developments, a 3+ percent drop is still a sizeable one. But that’s par for the course for October. Not to worry, November and December tend to be better months for stocks.
Now here’s the rest of the news:
Oh, and did you know that 7.4 Billion dollars were spent by American last year on Black Friday? Yeah, insane… And $4.2 Billion on Thanksgiving Day last year!
Gold currently at $1,909.86, silver at $24.47
October 29, 2019
Before we dive into DarrenDaily this morning, Moody’s Analytics uses three different models to determine presidential elections. One model is based on consumer’s pocketbooks, one is based on stock market performance, and the final model is based on unemployment data. Going back to 1980, the models only gave one false prediction in 2016. For 2020, all three models predict that President Trump will “steamroll the competition.”
H E R E ‘ S …. D A R R E N ….
Of course, a lot can happen in a year, and an economy at full employment now may not look so rosy in that time!
Count on one thing-for-sure … Change! 🙂