After a strong rebound in July, markets pulled back again in August. U.S. and developed international markets ended the month down by 3 percent to 5 percent, and fixed income declined. The primary driver here was rising rates. Higher rates provide for lower stock market values, and with fears of a recession taking down expected earnings, the market had a double whammy. Still, there was good economic news. Job growth beat expectations, and consumer and producer inflation showed signs of peaking.
Are there risks ahead? Stay tuned to my latest Market Thoughts video to find out.