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.