Earnings Signal a Bear Market: ‘Sell the House, Sell the Car, Sell the Kids’

The dog days of summer enter the August phase on Monday, but don’t expect much lethargy over the next few sessions as heavy doses of corporate data and earnings color trade. Investors are certainly looking for something to light a fire under this market, considering the S&P 500 over the past 11 days has been stuck in the narrowest range in 45 years.

There’s a hefty dose of gloom in both our call and chart (see below), including a bond guru’s latest take, paired with an earnings trend that’s sounding some serious bear-market alarms.

August, of course, has a rather treacherous track record. According to Bespoke Investment Group, August has been the worst month for blue chips over the past 20 years, averaging a 1.3% loss. January is the only month that comes close, with a 1.15% drop.

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam