Fun Facts: October Returns

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Source: Bianco Research, Charts Of The Week of November 2, 2011


Despite the end of month 2 day slide in stocks, October 2011 ranks as one of the best Octobers ever in stock market history.

Here are some interesting facts regarding October’s returns:

• The S&P 500 returned 10.92% on a total return basis during this past month, marking the best October since 1982.
• According to Doug Kass, the ten largest monthly gains have all occurred during secular bear markets.
• Merrill Lynch noted it was the third best October and the 23rd highest monthly return for the S&P since 1928.
• According to MarketBeat, October did not see back-to-back daily declines at all. The last time a month went without 2 consecutive days of declines was 5 years ago.
• On a seasonal basis, September and October are historically two of the three worst months to own stocks.
• November and December, on the other hand, rank as the fourth and second best months to own stocks, respectively.

Looking at the historical statistics, markets are likely to continue with an upward bias throughout November and December. Hedge funds are somewhat under-invested and playing performance catch up (but not Mutual funds — who are fairly loaded and dealing with equity outflows).

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