Chart of the Day - Monday, September 28th, 2020

Today’s Chart of the Day was shared on Twitter by Petr of Pivot Analytics (@pivotanalytics). It’s a seasonal composite of the S&P 500 that compiles data from 2000-2019. October has a reputation for being a troublesome month for Stocks, especially in election years. Most of the seasonality stats you see out there use data that goes back to the 1950s. We all learned in Statisticstics 101 that a larger sample size is always preferable. But when you look all the way back to 1950, you have outliers that skew the data, such as the crash in October 1987. Petr offers a unique perspective on seasonality by only looking at data from the past two decades. In a comment to The Chart Report, Petr said, “I typically only look at more recent data when it comes to seasonality because markets change all too frequently. The world is a different place now than it was in the ’50s or even ’80s.”