Waiting on fear: Bearish outlook for FTSE 100

WELCOME to the most dangerous month of the year for markets – but no, it’s not October.

It’s true that October often includes some substantial dips, but most times October closes higher for the month than it opened. This isn’t so for September, which has developed a dismal record of crashes. The catastrophe in October starts in September. Sometimes, this fall extends into early October, but the month is most often characterised by a rebound rally that leads into the Christmas cheer.

While October may have been the worst month in the market several decades ago, it has been replaced by September as traders anticipate the October collapse.