Oct 2022 was biggest month gain for indices since at least 1987

[winyaz]

As I see it, the market is up the most since July. The S&P 500 as measured by SPY was up 8.13% in October and 9.21% in July. Such volatility is normal for a bear market, and also at the end of a bear market. I have no idea which it is.

What is interesting to me is that the Dow outperformed by so much. Biggest month since 1976 and outperformed the Nasdaq by something like 9%. The Dow is a very limited snapshot so I looked for an answer on why it outperformed. In short, it is overweight energy and industrials and underweight technology according to:
https://www.marketwatch.com/story/w...as-it-heads-for-best-october-ever-11666976353

 

[NW-Bound]

As I see it, the market is up the most since July. The S&P 500 as measured by SPY was up 8.13% in October and 9.21% in July. Such volatility is normal for a bear market, and also at the end of a bear market. I have no idea which it is.

What is interesting to me is that the Dow outperformed by so much. Biggest month since 1976 and outperformed the Nasdaq by something like 9%. The Dow is a very limited snapshot so I looked for an answer on why it outperformed. In short, it is overweight energy and industrials and underweight technology according to:
https://www.marketwatch.com/story/w...as-it-heads-for-best-october-ever-11666976353

Yes.

The Dow is +2.4% above its level on September 1, but the Nasdaq is still down -11%. The S&P is between the above two indices, and at -4.9% down.

Not all tech stocks fare as bad as the Nasdaq. Semiconductors don't do well, but semiconductor equipment sector recovers like the Dow since September 1.

PS. Here are the YTD numbers. The S&P is again midway between the Dow and the Nasdaq.

Dow: -11%
S&P: -21%
Nasdaq: -33%

 

[Chuckanut]

I don't recommend or use The Dogs of the Dow but it makes for an interesting discussion. It's been around for many decades.

https://www.moneycrashers.com/dogs-dow-investment-strategy/

As you can see, the Dogs have produced a much better long-term total return than the Dow Jones Industrial Average, winning far more than losing. However, on a year-by-year basis, there are some years that the Dow will outpace the Dogs.

The strategy was designed as a way to go about beating the Dow by investing in only 10 thoughtfully chosen components of the index. In particular, those following the investing strategy focus only on the 10 highest dividend yielding stocks on the index.

 

[OldShooter]

Lots of variations on this market prediction but I have always found it to be useful when tempted to make predictions:

"When asked by a brash young investor for a forecast about how the market would go, J. P. Morgan glared down his generously endowed nose, bristled his mustache, and replied: 'It will fluctuate, young man. It will fluctuate.' ”

also

Warren Buffet: "I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two."

 

[NW-Bound]

I don't recommend or use The Dogs of the Dow but it makes for an interesting discussion. It's been around for many decades.

https://www.moneycrashers.com/dogs-dow-investment-strategy/

I learned of this Dogs of the Dow strategy back in the late 90s as it was pushed by the Motley Fool. I also bought a book written on it.

Before I could apply it, the Motley Fool disowned this strategy. I guess it was because it stopped working.

I wonder if there's a revival now.

PS. I never belonged to the Motley Fool, nor subscribed to their group. I only read some of their stuff on the Web, often from second-handed sources.

 

[NW-Bound]

As we know, the tech stocks did so well during the COVID years of 2020 and 2021. And there were of course valid reasons for this.

Now that the FAANG stocks have fallen from grace, investors are now looking for the next ideas. And they are piling onto stocks that are touted by a new narrative. An example is Boeing.

I cannot remember the last time I owned Boeing shares. Had to be more than 10 years. I missed out on the run-up of the stock up to the 737 Max fiasco. Of course the stock got hammered badly with COVID travel restrictions.

Boeing reported earnings, or severe lack of them, a week or two ago. Stock dropped -14% or so, on top of a big YTD decline. Yesterday, I remembered about the stock, and looked for it out of curiosity. Up big time, to even higher than prior to the disastrous earning release. There has to be a narrative supporting this price move. I have not bothered to find out, but perhaps I should, to see what I can learn about what moves the market.