Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

shazam
Lv 6
shazam asked in Business & FinanceInvesting · 1 decade ago

Why have major market crashes occurred in October (1929, 1987, 1997mini, 2008)?

Update:

seems several folks relate it to the annual calendar year budgeting/reporting cycle of business, govt. and the general economy.... does this mean if we changed this calendar to April 1 fiscal year..like in Japan... the crashes might shift to January?

6 Answers

Relevance
  • Gem
    Lv 7
    1 decade ago
    Favorite Answer

    Most likely because this is the point that companies (and individuals) figure out how good, or bad, they have done for the year.

    The accountants are compiling year to date results. In June, you can still pretend you can make up any shortfall in the next six months. By September, reality hits.

    But, just to add some reality, do you know that the real devaluing of the Depression stock market did NOT occur in 1929? As a matter of fact, the market recovered and went higher.

    It was the governments failed policy changes (just like now) that caused the deepening of the depression and the true loss in the market came in '33 & '34. That is when it went almost to zero.

    It took nearly 20 years to recover back to pre-depression levels.

  • Anonymous
    1 decade ago

    The market is a reflection of the economy. As one guy pointed out, by the 4th quarter you know how a company is doing. It also goes that by the 4th quarter you know how well the country's economy is doing. Is it showing signs of major strength or major weakness?

    By October, the market has been ready to explode with new money being dumped into the markets traditionally from vacationers returning from summer OR panic is setting in because smart guys have been watching and predicting a crash all year long. Think about this one for a minute...do you think they already know how christmas is gonna go right now? Yes they do.

  • Anonymous
    1 decade ago

    I believe it is just a matter of coming off the weakest month of the year on the downside. September has the historically lowest returns as it is at the end of summer, people coming off vacation and returning to school has an effect in lower volumes, employment figures and a whole array of financial data is depressed.

    There isn't any concrete reason or pattern to it actually when you consider Oct also represents the all time high just a year earlier.

  • 4 years ago

    i do no longer think that the inventory marketplace will crash on October ninth of this 3 hundred and sixty 5 days. If we are able to place self assurance in day and date, (bearing in recommendations the chronological order of October 29,Tuesday", October 19, "Monday") i will say that the inventory crash will take place in October 9, 2013, "Sunday". Now it somewhat is only an assumption. Now whilst it comprises, "If the international is delivered approximately melancholy, a conflict could end it?" the respond isn't any. the present "conflict" that's only a decoy to distract the actual intentions and objective of its Instigator. The UNIFICATION of the international economic gadget, government, military, and might I upload, faith will advance all stated earlier sky rocking; Like never seen earlier in human style historic previous. Does it SOUND regular???? "NWO" or NEW international ORDER... -"just to spell it out for people who're catching up"-. Of this i'm particular as a results of fact GOD has been warning us in the time of thousands of years, and greater of course, in the time of HIS be conscious "The Bible". ****JESUS IS COMING each time NOW****regrettably many pick to ignore approximately HIM, yet you won't be waiting to assert, "i did no longer understand".

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    First quarter begins of government budget, last quarter begins of normal business budget.

    If a business will fail, it will know in the fourth quarter that it's over.

  • 1 decade ago

    Good question. Something to do with the equinox, or the kids going back to school? Who knows?

Still have questions? Get your answers by asking now.