I hope everyone had a nice Labor Day weekend. As we turn the page to September, the next several months are stacking up to be action-packed. The employment report last week was mediocre, which makes my predictions for September less certain. During August the economy created 151,000 new jobs, below the last two months but not low enough to create concerns. The unemployment rate rose 0.1% to 4.9% and average hourly earnings increased 0.1%.
I expect to see a material pickup in market volatility over the next few months as the Federal Reserve (Fed) and presidential elections take center stage. The markets will be looking closely for signs of business confidence in the third quarter earnings reports. With most asset prices at or near highs due to easy monetary policies globally, I expect future gains in the short term to be difficult.
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