Blog Details

Blog Details

October 2018 Stock Market Commentary

Card image cap

The US stock market has seen a sell off in October in expectation of slower growth due to higher interest rates and US-China trade war having global consequences.

The higher interest rates have led to housing to cool off for the fifth straight month.

Market timing is notoriously difficult, but the recent stock market correction in October seems like as good an entry point as any into the stock markets, although with our strategies market timing doesn't matter as much as "time in the market" as our strategies will steadily correct to hold more cash or treasuries in a sustained bear market.

Check out this article in Yahoo Finance about the irrationality of the stock markets at the moment.

Trump's trade war, the end of Quantative easing and the rise in interest rates are starting to take their toll. There is an expectation of the US economy to seriously slow in 2019.

However, October has notoriously been a poor month for US stocks, whilst November-April have been the best.

The S&P 500 has had 15 down days so far in October, representing the highest number of losing days for the broad-market benchmark since October of 2008 when it fell 16 days.

The Cboe Volatility Index (VIX) or fear gauge as it is often called, closed at 24.16, but touched its highest intraday level, at 27.52, in nearly two weeks, gaining 21% this week. 

Couple this sell off & fear with the November - April period typically being the best months of the year historically for stocks and you could conclude now is as good a time as any to enter a position in the stock market or top up a position.

You can click here to find out more about our ETF investment strategies.

By using this website, you accept our Terms of Use and Privacy Policy. As with all investments your capital is at risk and the value of your investments as well as the income derived from them can rise as well as fall. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. Historical results do not include the transaction and management fees. All securities involve risk and may result in loss. This site is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any financial instruments. We do not provide financial advice to investors. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. The Money Pouch assumes no responsibility for the tax consequences or returns for any investor of any transaction.