The US Stock Market and the September Slump
The stock market has seen a roller coaster of a ride lately as the FED works to shore up the correction, which was over due but further weakened by the sub-prime lending crisis. Apparently, the summer rally came early and the correction came late, but what happens now during the normal September slump? Will the markets rebound and start their climb back up as economic figures shore up investor confidence?
Will consumers keep spending? Will their credit cards also see a sharp and more restrictive lending policy in place? What about retailers and their quarterlies that cometh - what will occur during triple-witching and who really has that crystal ball anyway? Will the FED cut rates on September 18th? What if they don't - what if they do and nothing happens as it was already perceived and factored into the game?
What about oil prices, Hurricanes, war with Iran, International Terrorists during their favorite month? Too many factors to consider you say. Well, let me break it down for you all - we ain't out of the woods yet, no matter what anyone tells you. It might be nice to see what the Retail Sales come out to be, what the car sales show and what the job growth numbers are in advance, but many insiders are taking it slow.
What does this tell us? It says our tropical storm is too far off to know and its final destination undetermined. So, strap in and hang on and we will continue to test and re-test, until we get more decent information. Sincerely, Lance.
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