FYI: There appears to be no fundamental reason why October should be the most volatile month of the stock-market calendar. Yet it often is.
The hard part is trying to explain why.
Let’s start with October’s well-established history of volatility as measured by daily changes in the Dow Jones Industrial Average since 1896, the year the index was created. On average, the standard deviation of October’s daily gyrations has been 38% higher than it is for the other 11 months. No other month comes close.
The plot thickens as we consider attempts to explain October’s heightened volatility. None so far has succeeded:
Regards,
Ted
https://www.wsj.com/articles/october-is-the-stock-markets-most-volatile-month-but-why-11570414200
