Four up months in a row! This is right after we had four down months in a row. After hitting another record high in August for the S&P 500, let’s remember to keep our risk tolerance in line with our volatility expectations. It’s easy to see how riding the ups and downs can be a bit daunting at times. Here’s what to look for this coming month:
- The Federal Reserve is expected to lower rates by 0.25% on September 17th. If they do not, it’s possible that we will see a big pullback in the stock and bond markets.
- September is historically the worst month for the S&P 500.
- Employment data will be interesting. If the labor market is deteriorating, perhaps the Fed will move to cut rates further than 0.25% considering their mandate of maximum possible employment.
- The end of the month will bring us the end of Q3. We might see some added volatility from companies adding or reducing their earnings expectations. Of course that’s a bit of speculation, but portfolio managers will also be rebalancing as we head into triple witching.
But…to break it all down, if you had to focus on just one thing to watch this month, it’s probably the Fed meeting.
Thank YOU for your continued support and trust in us. We are extremely grateful to you.
Larry Mroczkowski
President
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.