Market Musings 9/4/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
The S&P 500 closed August up +2% as Goldilocks optimism returned after an early recession scare.
📉 Recession Scare
Markets nosedived to start August after strong June #LaborMarkets jobs numbers were revised lower and July’s whiffed that.
Investors panicked that the Fed waited too long for #RateCuts and we’re headed for a #Recession.
📈 Goldilocks Returns
However, fears were very short-lived and the market quickly righted itself.
In the following weeks, jobless claims came in better than expected squashing #LaborMarkets fear.
Also a steady stream of positive macro data alleviated residual #Recession concerns.
While opening down -6%, the S&P 500 rallied +9% to finish up +2% in August.
With #Goldilocks optimism back and close to all-time highs again, we’d be cautious that perfection is already baked-in. While we still don’t think a soft landing is guaranteed yet, we do see potential for more #Flight2Safety Value rotation particularly with #AI caution growing.
September will likely be a big month with investors back from summer vacation and likely #RateCuts begin.
As usual, we recommend adding to portfolios regularly and take advantage of any market pullbacks.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original photo by fauxels.