Mark Twain Effect

“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.”   The Above mentioned quote is adopted from Mark Twain’s Pudd’nhead Wilson book. The phenomenon “October Effect” in stock markets has gotten its name from this very excerpt. The effect, observed in some markets, talks about the general low returns of stocks in October. Proponents of this idea usually refer to the time of the three stock market failures of the past decade. Let’s have a look at these crises:   Crisis Date...