Click here: The Weekly Beacon – August 26 2022
We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Seasonal Trends, Index Averages, September Results, China Market, Chinese Economy, Evergrande Group, Real Estate, Chinese Real estate, Empty Homes in China, Defaults, 2008 Financial Crisis, Home Price Averages, Build Back Better, ESG, Natural Gas Prices, Euro Crisis, Energy Squeeze, Black Outs, SPDR Energy Fund, Natural Gas Reserves, Canada Fails, Pipelines, Germany Canada Energy Deal, East Coast Production, Inflation Reduction Act, Wind energy, General Electric Stock, Utility Bills Soaring.
Dog Days of September?
Seasonality tells us that September is the worst month for both the Dow Jones and S&P 500 and it’s not even close. Since 1928, the two indexes have averaged a return of -1% for the month. Perhaps, as traders return from their summer adventures and kids go back to school, they tend to raise cash to pay off summer debt, or perhaps it is something else. Either way, we are warning you as September starts next Thursday, and if trends continue it could be rocky.
There is one piece of good news, though: Some of that selling may have already begun. The Dow and S&P 500 were both down Friday and Monday. Maybe September has come early this year.
China on The Brink?
China’s economy and financial markets have gone through a whirlwind over the last 12 to 18 months. The Chinese stock market peaked in February-March of 2021 and has yet to recover. Chinese markets have been plagued by scandal, default worries, and even antitrust laws within technology. Investors ran away from China as the risk outweighed the reward. There were safer markets with more trustworthy and stable governments. We warned investors, but were not invested in China directly so we did not sweat what could come.
