Economic Insights – August 2019

The month of July saw the S&P 500 gain 1.5 percent, while the DJIA was up 1 percent and the Nasdaq Composite rose 2.3 percent.  All three indices posted new highs during July.  And the July gain for the S&P 500 came after the index realized a 6.8 percent gain in June.  For the year, the S&P 500 index began August up 17 percent. 

With stocks overbought in the short term, the weak seasonal pattern which usually dominates August and September, and investor portfolios over-weighted with low-yielding bonds, we expect th.....