Excerpt from MarketWatch quoting DataTrek’s Nick Colas:
…. “As for volatility, don’t count October out yet, said Nicholas Colas, co-founder of DataTrek Reseach, in a Monday note. While positive on U.S. equities, he warned that investors remain in the midst of a seasonal rough patch.
After all, uncertainty around international trade remains despite last week’s agreement, particularly since the next major event won’t occur until an expected meeting between Trump and Chinese leader Xi Jinping at the Asia-Pacific Economic Cooperation forum in Chile next month. Meanwhile, investors appear to know earnings estimates are too high, making revenues a “wild card” in terms of results and guidance as earnings season gets under way, he said. And then there’s the Fed meeting at the end of the month.
“The rest of October will hit all the same topics (trade, zero earnings growth, rates) that have made the last year so volatile, just compressed into 14 trading days with meaningful developments on each issue,” Colas said”….
Read the full article here on MarketWatch!