Oktoberfest Is Upon Us

6 Facts Regarding Oktoberfest and 5 Facts Regarding the Stock Market in October

Many of us love this time of year for various reasons, it is football time, fall is upon us, the leaves start changing colors, and Oktoberfest.  I present you with 6 facts about Oktoberfest and 5 facts about the stock market in October.  Let’s jump right in:

FACT #1

Oktoberfest began in 1810 to celebrate the marriage of Crown Prince Ludwig and Princess Therese of Sax-Hildurghausen

October if often referred to as “October Effect” due to the extreme volatility in the stock market.  In fact, according to Barron’s, October’s volatility is 34% greater than the average of the other 11 months.

FACT #2:

Even though it is called Oktoberfest, it really is Septemberfest.  The festival starts in September and runs until the first Sunday of October.

Even though the stock market is most volatile in October, the S&P 500 has a positive average return of 1.4% for the month.

FACT #3

Approximately 7 million liters of beer is consumed in Germany during Oktoberfest. To put that in perspective, per Pew Research, approximately 8 million liters of beer is consumed monthly in the U.S.  The U.S. has approximately 4 times the population.

Even though the S&P has a positive return in October, it is also the month with two of the worst days in the stock market.  In 2008, we witnessed Black Monday and in 1929 it was Black Tuesday.  One should expect volatility in October.

FACT #4

The only beer served at the Oktoberfest in Germany must be brewed within the Munich city limits.

The U.S. government’s fiscal year starts October 1^st, which can sometimes impact the markets.

FACT #5

Nike recently introduced vomit proof sneakers with the German festival in mind. They sold out.

October has been the month which has ended the most bear markets, including recently in 2022.  Other years that saw bear markets end in October include 1987, 1990 and 2001.

Bonus Oktoberfest FACT:

Albert Einstein once worked the festival in 1896, as an electrician setting up one of the tents.

As we look forward to the warm autumn sunshine, we hope you found our Oktoberfest and stock market facts both delightful and enlightening! Now, it’s time to sit back, relax, and enjoy the vibrant colors of fall—because let’s be honest, winter will be here before we know it! So, grab your favorite cozy blanket and maybe a pumpkin spice latte, if that’s your thing, and take a moment to reflect on the joys this season brings.

Remember, amidst the hustle of financial planning, it’s crucial to carve out time for your personal well-being. After all, a well-balanced life is just as important as a well-balanced portfolio! Let’s make the most of fall and look ahead to a bright financial future with Virtus Wealth Management by your side!