How to approach the upcoming midterms
Politics and portfolios: what the midterms mean for markets
Capital Market Impact
Get updates on recent capital market data and trends, including possible expectations for future outcomes.
Markets retest lows as pessimism surges
Market observers are searching for signs of capitulation, with equity markets retesting the June low. Equity indexes are at oversold conditions consistent with June, with only 4% of the S&P 500 companies above their 50-day moving average. There may be a light at the end of the tunnel, however, as September ends, as we enter the best seasonal quarter of the year and approach the midterm election that has historically led to strong gains over the subsequent six-month period.
Time in the market, not market timing.
Avoid the emotional draw of market timing with a buy-and-hold approach to investing.
Markets retest lows as growth concerns rise
Beyond the economic and earnings slowdown, investors also face several technical factors that will impact near-term returns. September is the weakest month on the calendar historically, with the second half of the month particularly weak as management teams tamp down expectations for the following year.
Earnings under pressure from a potential global slowdown
Firms that generate more earnings in overseas markets may be at risk in a global recession.
Cycle Watch | September 2022: Uncertainty prevails
So far this year, the Fed has raised rates four times to cool inflation. Another 75-basis point hike is expected this month, but with job growth lower than expected in August and supply chains improving, the pace of future rate hikes may slow – or, at least, be smaller compared to previous hikes.