In October, the stock market showed a strong recovery after a slow summer. Concerns about China’s economic problems and the Federal Reserve’s policies have recently eased, causing the Dow to jump by about 1,500 points during the month. The S&P 500 went up by 8.3%, making it the best month in four years.
Given the recent worries in the market, it’s surprising that the S&P 500 is now only 2% away from reaching its all-time high. Bespoke Investment Group mentioned in their latest report that October was a great month for optimistic investors. Bank of America Merrill Lynch also noted that pessimistic investors on Wall Street are now in a “hibernation” period.