Victorious_Vi
08-31
This September could be an exception,ie, not likely to see market decline. Why I think so? First, we are expecting Fed cut on interest rates. This means it will be more affordable to trade/invest in equities with lower interest or cost of capital.This can also lead rotation of funds from bonds, t-bills, and money market funds into equities now that there is more potential for growth and lower returns from fixed income. The second reason is that this August is different and also an outlier- it's not bullish at all as we experience the Black Monday as result of Japanese Yen carry trade. Now stocks are still near support and still potential to recover. I will remain bullish but cautious too and act accordingly as the market present itself.
Jobs Report Revised Down! Will it Reinforce September Curse?
The non-farm payrolls for June and July were revised down from 179,000 to 118,000; and 114,000 to 89,000 respectively. After the revisions, the combined number of new jobs added in June and July is 86,000 lower than previously reported. Traders have increased their bets on a 50 basis point rate cut by Fed in September. The September Effect is a supposed market anomaly whereby stock market returns are relatively weak during the month of September. -------------------- Is September Curse coming true? Will there be more declines or rebound on Friday?
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