“There is something in October sets the gypsy blood astir:
We must rise and follow her,
When from every hill of flame,
She calls, and calls each vagabond by name.”
William Bliss Carman (1861-1929)
Seventy-three years ago my mother wrote, “An Ode to October.” It was the month of her parents’ birth and of their wedding. The poem begins:
“October is a happy month,
A month of love and song.”
This October was more mixed. On the positive side, markets rose, despite the S&P 500 dropping 5.6% in the first two weeks. Oil prices declined 11% during the month, a welcome relief as we head into the winter season.
Of greater concern, market volatility, as measured by the VIX, rose 61% by mid-month; though by the end of October was lower than where it had been at the start. Additionally, there were four days when the DJIA moved more than 1.5%, the most since June 2012. Increased volatility serves as a reminder of the unpredictability of markets. While bear markets always come to an end, bull markets do not grow to the sky.
Terrorism came to the Western Hemisphere, with two instances in two days in Canada and with a hatchet-wielding Islamist whacking a cop in New York. In all three cases, justice was swift. Venezuela won a seat on the United Nation’s Security Council. An unmanned NASA-contracted rocket exploded on lift-off at NASA’s Wallop Flight Facility in Virginia. The craft, a commercial vehicle, was carrying 5000 pounds of supplies to the International Space Station. Fortunately no one was hurt. A Russian spaceship made the trip in its stead. Not so lucky were the pilots of SpaceShipTwo, a Virgin Galactic craft designed for tourists that fell apart over the Mohave Desert. One was killed; the other managed to parachute out, but was badly injured. The two incidents highlight the fact we have lost our leadership in space.