We’re about to hit the closing stages of 2022, but life doesn’t appear to be getting any easier for those on Wall Street. The latest edition of CNBC’s Pro Playbook was issued via email yesterday (Thursday), warning that September could be the worst month yet for stock performance.
Explaining that “August was rough for Wall Street, and September could be more of the same”, the Pro Playbook notes that even in a typical year, September is a tough month for stocks and often posts the worst performance of the whole 12 months.
This year, it’s likely to be bleaker after a prolonged downward slide for the S&P 500. With markets rattled by the Federal Reserve’s aggressive rate hikes action and the technical signs of a recession looming large, September could be very turbulent on Wall Street.
It’s also worth noting that the expected difficulties in stocks and bonds for September and October coincide with expectations of when a recession will truly start to make its presence felt across the economy.
Reuters analysts say that stocks are already beginning to get a taste of what’s to come this month. “September kicked off on a stormy note on Thursday, as persistent worries about rising global interest rates and recessions hounded stocks, bonds and oil prices,” they said.
This outlook is hugely positive for gold, as the precious metal would likely be bolstered by a renewed surge of safe haven buying. Buy now to benefit.
