Just as they do today, traders thousands of years ago saw the value of seasonal tendencies. For example, grain markets always depended on the seasons.
A well-known seasonal trend in financial markets is that stocks tend to crash in the autumn months.
Many of us remember the October crashes in 1987 and 1989. There was also the crash of 1929, which led to the Great Depression. Other fall crashes include the panics of 1857, 1869 and 1907.
Now we understand that panics in the 1800s were tied to seasonal trends. And there’s a reason for that…
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