After losing 1,300 points in two days, Wall Street rebounded on Friday with a gain of nearly 300 points. But the question is what is causing the recent volatility.
It could be the trade war. It could be concerns over tech. But it could also be what they call the 'October Effect,' the perception the month is bad b4ecause the crashes of 1929 and 1987 happened in October. But, financial planner Spencer McGowan tells KTRH the 'October Effect' is overblown.
“September actually registers as having the most downside. That said some horrible Octobers have occurred,” McGowan stated
And he says if you, as an investor or someone just worried about your 401K are really worried, the bottom line is you shouldn't be right now.
“What you don’t have compared to 2007; we were covering how many bank failures there were every week. And this was before everything broke loose,” McGowan explained.
That's not happening now, and the economic numbers continue to be good, so McGowan doesn't think we are hitting a bear market yet.