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October Can Be a Tough Month for the Stock Market. 3 Portfolio Moves to Make.

1. BofA forecasts S&P 500 EPS growth of 11% in 2025 and 10% in 2026. 2. Industrials, financials, and materials are projected to outperform in Q4. 3. The VIX is at 15.3, making put options relatively cheap. 4. Investors should prepare for potential volatility in October. 5. Broadening EPS growth may not translate to stellar index returns.

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FAQ

Why Bullish?

The forecasted earnings growth is a positive indicator for SPY. Historically, strong EPS growth often leads to upward price movement in SPY.

How important is it?

The S&P 500 earnings growth and favorable sectors signal positive trends affecting SPY's performance.

Why Short Term?

October is a historically volatile month; the effects of earnings forecasts can influence SPY prices in the short term.

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