As we forecast in June, the US stock market to enter a period of weakness with stock prices declining during the summer after the major indices had a solid rally in the first half of 2024. The reasons for summer weakness vary from one year to the next, but the consistent pattern is unmistakable. This summer, the rationale given why investors were reducing stock allocations included disappointment the Feds have not lowered interest rates, concerns about the wars in Israel and Ukraine, stocks were overpriced to their earnings, and weak housing market. In this Update we review reports released by the Federal Reserve Banks on businesses leader sentiment and their forecasts for the next six months. More importantly, read about our views of the stock market rebound and if it will continue to the end of the year.
