It might seem like ages ago in market-time, but this September marked one year since the major indexes posted their highest readings of 2018. While that by itself might not be extraordinarily noteworthy, what has followed those highs is.
With an increase in chatter about the next recession lurking right around the corner, it is notable that the Manufacturing Purchasing Managers’ Index (PMI) slipped into contraction territory to 49.1 in August after expanding for 35 months.
August is supposed to be the quietest month of the year—the summer doldrums. And yet, this August has proven to be anything but quiet, thanks to corporate earnings and the most highly anticipated FOMC meetings in years.
The Q2 earnings reporting cycle is underway, as results from the big banks begin hitting the headlines. Earnings growth isn’t expected to improve this quarter, as analysts predict moderating economic growth. Expectations for the S&P 500 Index are about -3.3% from the year-earlier…