With the election only eight days away and earnings season in full swing, stocks have bucked the usual October weakness during election years so far in 2020 (Monday’s losses notwithstanding). The good news is this could continue, as one of the best days of the year is right around the corner.
We would like to stress you should never invest based on simply one day, but it is worth noting that October 28 historically has been the best day of the year. “Maybe because it is my birthday, or perhaps it is simply random,” explained LPL Financial Chief Market Strategist Ryan Detrick. “But October 28 is the best day of the year for stocks, and it is almost here.”
As shown in the LPL Chart of the Day, the S&P 500 Index has averaged a 0.54% return on October 28, better than any other day of the year—with the day after Christmas the second best. On the downside, October 19 has been the worst day of the year, and we can thank the crash of 1987 for that one.
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