Why do stock market crashes always seem to happen in October?

[Odin2005]

:shrug:

[JuniperLea]

1. Optimism wanes at the beginning of the last quarter?

Just a guess.

[ixion]

4. yeah, that was my guess, too

after three bad quarters, you're ready to bail in the fourth.

[Junkdrawer]

2. You don't roll out New Products in August?

:shrug:

[burythehatchet]

3. I knew the answer at one time; something about a set of financial contracts expiring/renewing

in October.

[Peacetrain]

5. ooohhh that is a good question!!!

[nadinbrzezinski]

6. Beginning of last quarter and usually comes at the end of bad news

throughout previous quarters

Also in this case people are bailing out of hedge funds... to make their sheets look less red by the beginning of the next fiscal year. They need 90 days... you do the math...

[Kurt_and_Hunter]

7. It's a tradition that started ages ago related to borrowing against harvests

[nonconformist]

8. The fiscal year just ended. nt

[Jamastiene]

9. Slow month?

It could be that it's the last quarter and a slow month combined. So, any sharp decline in sales is going to hit harder when those two factors kick in at the same time. :shrug:

[Dr Fate]

10. Haloween Witch Magic. n/t

n/t

[endarkenment]

11. Losses realized before Dec 31 used against tax liability for that year

However consider this other interesting problem: boomers entering retirement are now a long term downward pressure on the market as they unload stock equities either to cash out or as they transfer assets to less volatile investments. The trends continues for something like 20 years.

[Uncle Joe]

12. Maybe it has something to do with fall being the season when most of the crops are harvested and

it's like they say you reap what you sow.

I also believe the fiscal year ends in October for many corporations.