October, the month of Splitting Apart

October has always been a month where world stock markets take a beating and fund managers feel jittery in anticipation of bigger falls to come. Discerning shares investors who do their homework well may know why foreign funds usually sell down their shareholdings this month. No, they are not cashing out for Christmas or pushing shares down in concert, in order to buy back at lower prices. Discounting the herd mentality of some smaller funds, major foreign funds are turning stockholdings into cash in case world stock markets crash, as the markets have done so occasionally during October months. The biggest single day point drop of 508 or 22.6% in the Dow Jones Industrial Average occurred on October 19, 1987 and brought world stock markets to their knees. The US stock market crashes in October 28 and 29, 1929 were probably the precursor to the Great Depression in the 1930s.

Falling share prices every October have become such commonplace for the past twenty five years that it can be regarded as a cyclic change. (Cyclic changes will be discussed in another entry.) Knowing why share markets are down because of foreign funds selling and the reason behind their selling is not the gist of this entry. More meaningful to readers perhaps is why stock markets fall or crash during this particular month. For that we can take a look at Hexagram 23 Bo / Splitting Apart the monthly hexagram for October (the ninth month). The commentary to the hexagram gives some indication of what can happen during this month.

“The (five) dark lines are about to mount upwards and overthrow the last firm, light line (at the top) by exerting a disintegrating influence on it. The inferior, dark forces overcome what is superior and strong, not by direct means, but by undermining it gradually and imperceptibly, so that it finally collapses. The lines of the hexagram present the image of a house, the top line being the roof, and because the roof is being shattered the house collapses. This leads to the Judgment of Splitting Apart: It does not further one to go anywhere. This suggests that one should submit to the bad time and remain quiet. For it is a question not of man’s doing but of time conditions, which, according to the laws of heaven, show an alternation of increase and decrease, fullness and emptiness. It is impossible to counteract these conditions of the time. Hence it is not cowardice but wisdom to submit and avoid action.” [W/B]

Earnest Yi students can study the lines text and perhaps derive a better understanding of why Hexagram 23 is bad for share investments or any other investments. Regular readers may recall that the Quanzhen immortal had also mentioned Splitting Apart in one of the cryptic messages on my fortune. Therefore enjoy your reading of the hexagram and perhaps learn something deeper today. For the Yi is indeed profound.