1. September is historically the worst
month for stocks. Then comes October which is notorious for the scary market crashes
in 1929, 1987, 2008 and, most recently, 2018.
2. The spike in Covid-19 cases due to
the Delta variant.
3. Rising inflation pressures and how
the Federal Reserve will respond to it.
4. The latest PPI numbers show that the
wholesale side of the economy continues to be under a lot of pressure with
producers still facing broad price increases.
5. The chaos in Afghanistan.
6. The Federal Reserve may start
tapering stimulus this year even as the delta virus variant undermines global
7. Tightening Chinese regulations - an
ongoing regulatory crackdown in China points to a fundamental difference
between the two countries that many didn’t seem to grasp: When it comes to
making the rules, corporations don’t have as much influence in China as they do
8. Expected stimulus reduction after the
Fed’s conference at Jackson Hole, Wyoming during Aug. 26-28.
9. Earnings growth slowing - profit
growth likely peaked on a year-over-year basis in the second quarter. Earnings
will likely continue to increase, but the pace is expected to slow dramatically
in the second half of this year.
10. The drag on U.S.
economic growth in the second quarter came from inventory drawdowns, which
subtracted 1.1% from GDP, rising imports, and a decrease in federal government
spending. According to the Bureau of Economic Analysis, nondefense spending on
intermediate goods and services fell the most, largely due to a drop-off in
Paycheck Protection Program (PPP) loans.1
11. Housing rentals — and the broader
issue of housing affordability — remain a major pain point for the average
American. It also reflects a housing market that remains majorly imbalanced
between supply and demand.
12. The Border