Gundlach says the S&P 500 can’t handle a December rate increase

While it was a blowout week for the Shanghai Composite, U.S. stocks are looking at gains in the 1% ballpark. It’s early still, but so far, November is not out to impress us like October did.

Maybe that’s because some investors were eager to cash in on that impressive month for stocks. This morning, the Bank of America released a chart that shows how its private wealthy clients have been reducing riskier assets over the past two to three weeks:

More on a lack of buyers can be heard from Cracked Market blogger Jani Ziedins. He says the S&P 500 can’t seem to cross all-time highs above 2,130, pointing a finger at institutional investors. He notes that retail investors will go chasing after a 200-pound rebound, but that’s not so true on the institutional side. “They are experienced enough to know a pullback is just around the corner and will patiently wait for a hot market to cool off,” says Ziedins.

No matter what kind of knee-jerk reaction we get today from jobs data, “it is going to be really hard to find new buyers to keep these sharp price gains going,” Ziedins says.

Indeed, the sophisticated investor side seems a bit edgy. In our call of the day, rock-star fund manager Jeffrey Gundlach says this stock market can’t handle and won’t handle an interest-rate hike in December. Read on for more.

CNBC