FINANCE

Stock markets sometimes go haywire in October by Charlie Smith O ctober has a way of making investors nervous. And for good reason. e largest percentage drop in the Dow Jones Industrial Average the November 3 presidential election. Some are even wondering whether Donald Trump will refuse to leave oce even if he loses. en there’s the deteriorating situation with came on October 19, 1987. It crashed by more Close the doors, be COVID-19 coinciding with fall u season. than 22 percent on so-called Black Monday as traders engaged in panic selling. fearful when others However, not everyone believes the end is nigh for investors. In 18 other major world markets on that day, the index decline exceeded 20 percent. are greedy. SFU macroeconomist Lucas Herrenbrueck, for example, thinks that physical e worst fall, 45.8 percent, occurred in – Warren Buffe distancing and less international travel is Hong Kong. Even the city’s richest resileading people with regular incomes to dent, Li Ka-shing, suered large losses on turn more attention to their investments. paper, along with many other tycoons. “To put it simply, the pandemic has ine third- and fourth-largest percentcreased demand for saving instruments, age collapses in the Dow also occurred in “However, the eect is not overwhelmincluding stocks and bonds, while at the October—both times in 1929—preceding ing and, more importantly, is not predictsame time reduced our opportunities to the Great Depression of the 1930s. (e Dow is a basket of 30 stocks of large AmerTycoon Li Ka-shing has felt the sting of October. Photo by EdTech Stanford School of Medicine. ive in any useful sense,” Chen wrote last year. “If an individual had bet against Sepspend on other things,” Herrenbrueck said in a recent SFU news release. “is comican companies in a range of industries.) from banks, triggering the collapse of tember over the last 100 years, that indibination is contributing to higher asset

And the 10th- and 11th-largest percentsome nancial institutions, including the vidual would have made an overall prot. prices despite poor economic conditions.” age drops happened on October 26, 1987, Knickerbocker Trust Company. If the investor had made that bet only in Of course, predicting the direction of and on October 15, 2008. e latter came But even though the worst single-day 2014, that investor would have lost money.” markets is tougher than overcooked brisin the midst of a global economic meltmarket tar and featherings have occurred is month, as of the close on Septemket, particularly over the short term. down that preceded the Great Recession. in October, the worst year for stocks, on ber 28, the Dow had fallen 4.45 percent. But billionaire investor Warren Buf

A six-week Bankers’ Panic of 1907 also average, has been September. e more tech-heavy NASDAQ Composfett has had success over the long term. started in October. at followed a 50 perAccording to Investopedia director of ite Index declined by 7.91 percent over the “I will tell you how to become rich,” the cent fall in share prices from the previous trading and investing content James Chen, same period. Sage of Omaha once advised. “Close the year on the New York Stock Exchange. Depositors quickly withdrew their money it’s the only month that has shown a nega tive return during the past century. ere’s always a chance of another massive October decline in the markets in advance of doors, be fearful when others are greedy. Be greedy when others are fearful.” g

1642 CHARLES STREET

#206 - 3255 Heather St. | $540,000

The houses on Charles Street, across from Grandview Park and steps to Commercial Drive. Built by Peter Duffey who chose 1642 as his personal home at the brow of the hill. Winter views to North Shore mountains and downtown. Now a completely restored 1911 Edwardian mansion. Four renovated levels with large addition of great room and luxurious master suite. MAIN formal entry, living, dining, chef’s kitchen, and great room with window seat to views of the South, private yard. Chestnut, pear, plum trees, and lilacs. UP 4 bedrooms on one level plus ascend to the loft, perfect for office, studio, or play. DOWN one-bedroom suite and more space for you. Fir floors, pocket doors, stained glass windows, restored woodwork and clawfoot tub. Single garage plus carport. One of kind YOU’LL LOVE IT! $2,389,000

RE/MAX Real Estate Services

#110 - 3540 West 41st Ave. Vancouver V6N 3E6 Each office independently owned and operated trade up! call 604.868.1651

This lovely and bright top fl oor fully remodelled 1-bdrm corner suite boasts high ceilings with east + west windows,engineered birch hardwood fl oors and a very effi cient layout. Enjoy a reno’d kitchen with birch cabinets, Caesarstone counters and fi tted appls, stylish bathroom w/ modern glass shower, highend fi xtures, and a whisper-quiet fan. The all-in-one washer/dryer saves space to enjoy a built-in closet organizer and the roomy bdrm has a b/i closet dresser. Enjoy cozy WOOD f/p at night + sunrise coffee on east-facing balcony overlooking Heather bikeway. 2 min walk to transit: UBC-Canada Line, 2 blks to Cambie Village, Douglas Park. Proactive strata and strong CRF, newer roofs, re-piping 2014, new skylights 2020. Rentals allowed. Small pets welcome. me.

LYNN SAKAI-BODENYL OPEN HOUSEOPEN HOUS

Personal Real Estate Corporation 604-218-4800 RE/MAX Westcoast ionrs 6 R Pe Sunday Oct. 4th | 2-4pm S d O c t 4 t h