August markets dropped and recovered by at least 2.6% three times, including the worst day of the year on August 5. The S&P closed the month down nearly 3%. Not all sectors of the market slumped in August, notably Utilities and REITs both gained this month.
Two factors played primary roles in the turbulent August market: U.S.-China trade relations and a recession signal from the bond market. As both these conditions are expected to persist, we can expect this unusually volatile stock market activity to continue into September. As this bull market shows more signs of aging, your portfolios are prepared to endure with minimal stress.
Shortening days bring a flurry of wings to the feeders. Cool nights usher in welcome relief from summer humidity. Curtains stir at windows open again. In some ways the best of summer waits in the remaining days. While all of nature sense the change, most are triggered to urgent preparations. We have the luxury of extending summer for weeks, basking in the golden days that linger in September. I consider this putting by the harvest of another summer’s memories.
