• Go mobile
NOTIFICATIONS
Chat 791
+
1 week ago

Friday the 13th in October? Oh No!

SCARY
halloweenhead

Tomorrow is the first Friday the 13th to happen in October since 2006. Of course, this is a big day if you are unfortunate enough to suffer from triskaidekaphobia—the fear of the number 13. A fear of the actual day of Friday the 13th is called paraskevidekatriaphobia or friggatriskaidekaphobia.

Now that those big words are out of the way, does this fateful day really mean anything?

The table below shows how the S&P 500 Index has performed historically each day of the week. But it’s really no surprise. Generally speaking, no one likes Monday, and it shows as it is by far the worst day of the week for the index.

Since 1928, there have been 152 instances of Friday the 13th; and wouldn’t you know it, the S&P 500 does a little worse on average with an annualized 4.2% gain versus 12.8% for all Fridays*. Comparing the daily performance in the chart below, the index’s average return on Friday the 13th is notably below the median, which tells us that the average is skewed by some rather large drops.

Speaking of those large drops, would you believe that they tend to take place in October? That’s right; the two worst “Friday the 13th” daily returns for the S&P 500 took place in the month of October: -3.8% in 1933 and -6.1% in 1989. The fun doesn’t stop there though, as tomorrow will be the thirteenth Friday the 13thto occur in October. Breaking it down by month, sure enough October tends to see some of the worst performances on Friday the 13th.

Per Ryan Detrick, Senior Market Strategist, “Unless you break a mirror or see a black cat on Friday, we aren’t in any way saying one day matters more or less than another. Still, wouldn’t you know it— Friday the 13th tends to be a weak day on average; but taking it a step further, this day does even worse during October. You can’t make this stuff up!”

Happy Friday the 13th everyone.

IMPORTANT DISCLOSURES

*Please note: The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of predecessor index, the S&P 90.

The economic forecasts set forth in the presentation may not develop as predicted.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Indices are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.

Stock investing involves risk including loss of principal.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor

Member FINRA/SIPC

Tracking # 1-654409 (Exp. 10/18)

1 week ago
65 Views
Comments

Your email address will not be published. Required fields are marked *