From Reuters (Article):
“With September, typically the worst month in the year for stocks, on the doorstep, investors are likely to be nervous that cracks seen in the more than-eight year bull run in equities will turn into a steeper selloff.”
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There are some cracks in market breadth,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York, who said he has grown more cautious in recent weeks.
The S&P 500 is trading at 17.7 times expected earnings – down marginally from March, when it hit a high not seen since 2004 – a level many investors consider expensive and increasing the risk of a market selloff.
“When you’re at these valuation levels in a lot of these names, it doesn’t take much,” said Stephen Massocca, senior vice president, Wedbush Securities in San Francisco.
History is against stocks: September ranks as the worst month for stocks, according to the Stock Trader’s Almanac, producing an average price return for the S&P 500 of negative 0.5 percent.
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