Forget April, September has again proved itself to be the cruelest month of the year for investors. In the one just ended; the S&P 500 Index (‘S&P 500’) fell 9.2%. Other major indices acted in like manner.
The main culprits of the third quarter’s weakness remain the well-discussed topics of inflation and interest rates, plus a large dose of international turmoil. There are many signs of a slowing U.S. economy. There are some, but fewer, signs of a pending recession. Historically “inverted” yield curves (a condition where short-term interest rates are higher than long-term rates), have predicted recessions, sometimes falsely.
Our Third Quarter Review and Market Commentary provided by PETER W. TUZ, CFA, CFP®, President & Director, Portfolio Manager, Chase Investment Counsel.
