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September Market Uncertainty Likely
Just another reminder that it’s still 2020
Ah, September — cooler weather and fall leaves (depending on your locale), and a month associated with stock market uncertainty. Many corporations, as well as the US government itself, have their fiscal year end in September. That’s when everyone needs to square up and make sure that they are telling the truth, so to speak. Sometimes surprises happen. Sometimes a very awkward October follows.
In September 2019, there was a liquidity event in the US that went under the radar for the most part; just know that the Fed has been pumping billions of dollars into our banks for quite a while before Covid came along. The overnight lending rate on the repo market shot up to almost 10% from about 2%. When this happens it seems to give the picture that maybe banks don’t quite trust one another for lending, which I would guess is probably never a good sign.
It has also become obvious in recent months that the performance of the stock market is not indicative of the ‘real economy’ humming underneath. So who knows — maybe a market crash, maybe an economic crash for the rest of us, which admittedly, is an odd thing to consider them separately.
In the US, we have a contested election coming up soon with a divided country. There is a little country…
