October is notorious for being the month where we see yearly lows in the stock market. The impact of this institutional selling is a significant factor to what has become known as the “October Effect.”
Institutions include: Pension funds, Mutual funds and banks. They control approximately $45 trillion in stock market assets in the United States.
This represents approximately 70% of the total value of the US stock market.
To visualize the impact of institutional selling on individual investors, imagine the old saying, “When elephants dance, the grass gets trampled.”
The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.
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