Over the medium and longer term, the fundamentals are the key drivers of stock prices. These drivers include economic growth, corporate profits, interest rates and bond yields, and the level of inflation.
October has a gloomy reputation.
- The 1929 market crash and the 1987 market crash were in October.
- During the 2008 financial crisis, stocks were badly beaten up in the month that sports Halloween.
Yet, since 1970, the worst performing month for the S&P 500 Index2 has been September, per St. Louis Federal Reserve data.
The government’s monthly jobs report always captures the attention of analysts, economists, politicians, and investors – maybe too much attention. Why is it such a headline grabber?
August can be hot and muggy. It leaves one pining for a fresh autumn breeze. Since 1970, August has, on average, been a lackluster performer for stocks (St. Louis Federal Reserve S&P 500 data). Last month was no exception – hot and muggy.