Autumn is here with its stunning scenery, lower temperatures and promise of the holidays, so bring on the candy and creative Halloween costumes!
Don’t forget that the deadline to file your 2020 Form 1040 is October 15, 2021. The deadline is unchanged despite the IRS moving spring’s filing deadline up a month from April 15, 2021, to May 17, 2021. If you filed form 1040, you still have to get your returns in by October 15!
Let’s talk about the “October Effect!” It’s the perception that stocks tend to decline during October. Many of the largest market declines have happened in October, including the Great Crash of 1929, which signaled the start of the Great Depression.
The ghosts of 1929 reappeared in 1987 during Black Monday (October 19), where the market dropped 22% in one day! Those two examples aside, statistical evidence doesn’t show that stocks actually trend lower in October, so the October Effect is considered a psychological expectation rather than an actual phenomenon. Still, don’t get spooked by the markets this month!
Enjoy October! Please reach out to us if you have any questions or concerns.
Don't Let Tax Deadlines Spook You
September 27, 2021