After rallying for most of the last four months stocks have been down for the last three weeks. Despite this bout of weakness this is not the time to panic. I see four catalysts that tell me stocks will rebound and rally.
September is historically the worst month of the year for US stocks. It is the only month of the year with a negative return from 1925 to 2019. Looking forward I remain optimistic on the stock market. I am expecting more volatility in the next few weeks but I think the worst of the sell off is over.
After an incredible rally for the last five months US and global stocks took a tumble last week as volatility returned to the market. Despite the recent pullback I remain optimistic on stocks. I do not think this is the beginning of larger decline. I think this is a normal and healthy pullback after a huge rally. These pullbacks are usually good for stocks.