Behavioral Finance Phenomenon: The Stock Market’s Turnaround Tuesday

📉 Get Ready for Turnaround Tuesday in the Stock Market 📈

On Monday, September 15th, 2008, I was in the green room for a financial news segment, preparing to speak on behavioral finance.

A CEO of a large equity investment firm was also there. As he left, he turned to me and said: “Get ready for Turnaround Tuesday!”

📊 That Tuesday turned out to be one of the biggest rallies in S&P 500 history.
Curious, I looked into it further — and sure enough, the stock market has a quirky history of rallying on Tuesdays following steep Monday selloffs. It’s a known behavioral phenomenon.

🧠 This article covers the effect in depth:
 👉 https://lnkd.in/gt6GcUHd

📚 And this recent academic paper finds the effect may even start Monday afternoon:
 👉 https://lnkd.in/gtrKWSZW
 (Though the alliteration on “Mean-Reversion Monday” isn’t quite as catchy...)

⚠️ But important context: These bounces are often temporary.

 Until we see a sustained decline in uncertainty around inflation and tariffs, markets are likely to remain on edge.