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- In the next month, we may see an adjustment in the stock market
In the next month, we may see an adjustment in the stock market
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Loading...Next month could prove to be a volatile one for securities, living up to its track record as a tough time for stocks, according to Prudential Financial Inc.’s Quincy Krosby.
“We’re getting into August, which statistically is probably the least favorablemonth for the market, and there is probably something out there that should come and bring that market down a bit,” Krosby, a market strategist at Prudential, said Tuesday in an interview on Bloomberg Television.
Krosby said that stocks could drop 5 percent or even 10 percent. The S&P 500 Index fell during August in three of the past four years, even as markets extended a bull run that started in early 2009.
Record equity prices have spurred concern among money managers such as Paul Tudor Jones and Scott Minerd that the market has reached unsustainablelevels. Federal Reserve Chair Janet Yellen said in June that some asset prices had become “somewhat rich,” although she noted in July that gains in markets had not been accompanied by a substantial borrowing increase.
The S&P 500 Index last slumped at least 5 percent during the aftermath of the June 2016 Brexit vote, according to data compiled by Bloomberg. That’s thelongest streak since 1996. When asked if a 5 percent decline would worry her, Krosby said the U.S. economy isn’t slowing down too much yet.
Source: Bloomberg Pro Terminal
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