Earnings signal a bear market: ‘Sell the house, sell the car, sell the kids’

Monday, August 1, 2016
By Paul Martin

Critical intelligence before the U.S. market opens

By Shawn Langlois
Aug 1, 2016

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 SPX, +0.11% over the past 11 days has been stuck in the narrowest range in 45 years.

There’s plenty of gloom in both our call and chart (see below), including one 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.

Still, some positive news on the employment front at the end of the week might help keep this aging bull alive, while the next batch of earnings — more than 100 S&P companies, led by the likes of Tesla Motors TSLA, -0.04% and Procter & Gamble PG, +1.06% — also come into view.

The Rest…HERE

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