September could get ugly because the market has almost no room for bad news

September gets blamed for crashes because September has a reputation.

But look at what is actually happening right now.

Oil is back above $100.

The 10-year is around 4.8%.

The 30-year is above 5.2%.

The jobs number came in way hotter than expected.

Now traders are starting to price a higher chance of the Fed hiking again.

And stocks are still sitting near record highs.

That’s the part that bothers me.

You have higher oil.

Higher long-term yields.

More inflation pressure.

Less confidence that the Fed can cut.

Yet the market hasn’t really repriced for that.

Maybe nothing happens. Markets can ignore bad news for a long time.

But if something breaks, September won’t be the reason.

The market was already sitting on a pile of assumptions before the month even started.

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