October 'Jinx' Averted Despite Launch of ACA, Government Shutdown

The market grew in October, achieving new highs in spite of the traditional pall that rests over the month in which many famous crashes have happened throughout stock market history.

Online PR News – 06-November-2013 – Limassol/Cyprus – In times of uncertainty, the stock market tends to be a good barometer of public and financial sentiment. This fact rings true particularly in the month of October, when markets are traditionally quiet as investors wait with bated breath. They have good reason: a number of the most catastrophic market crashes have occurred in October with startling regularity. That list includes the Wall Street Crash of 1929, the Black Monday of 1987, the Stock Market Downturn of 2002, and the U.S. Bear Market of 2007, among others.

This history has made Wall Street a bit superstitious about the otherwise innocuous month, and recent events would typically only serve to add fuel to the fire. Such fluctuations can have an extreme impact on binary options trading when uncertainty prevails. This year, October saw a 16 day long government shutdown that purportedly had a $24 billion impact on the global economy in the form of lost government worker wages, missed tourist revenues from national parks, and reductions in government services.

Such fluctuations can have an extreme impact on binary options trading when uncertainty prevails.

If that kind of financial impact is not already enough to affect the stock market and those who engage in binary options trading, another sweeping change was also implemented in October in the form of certain aspects of the Affordable Care Act (ACA) going into effect. While the regulation wonít be fully implemented until 2015, October saw the start of the marketplace open enrollment. Many in the business community view the ACA with trepidation due to the new requirements that will force certain companies to take expensive compliance measures. With many companies looking at cost increases that will have a direct impact on their bottom lines, now more than ever is a skittish time for investors.

Despite all of these factors, the market remained up overall in October, with the S&P 500 seeing significant gains that landed it at +23.1% for the year. The Dow Jones and Nasdaq also saw double-digit growth, though some analysts fear that a drop is in store due to a pending sell-off following this period of rising stocks.

Thatís not to say that October did not see some wild fluctuations, which required many to reconsider their binary options strategy. The beginning of the month saw losses posted on the Dow for several days, and volatility levels were almost off the charts. However, many investors and those who engage in binary options trading saw this volatility as an opportunity and started investing in stocks. Generally, market veterans showed little fear of the shutdown, particularly given the lack of any lasting impressions made by the last few government shutdowns.

There have been 11 such shutdowns in the past 32 years, with only a few of them causing any kind of noticeable market drops. Generally, the markets rose, or otherwise most of the losses were recouped within a couple of months of the end of the shutdown. For savvy investors who know how to adapt their binary options strategy to accommodate market volatility during these uncertain times, these types of events and changes present only further opportunities for growth.

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