The bulls won’t want to hear this, but the market could have a date soon for a good old-fashioned washout.
Market volatility has returned in earnest this month. Pick your poison on the drivers as there are many. There is the 27% crash in the once red-hot stock of Tesla on fresh fears of overvaluation. In turn, those concerns have spilled over into selloffs for other 2020 runaway stocks such as Apple, Amazon, Netflix, Nikola and Advanced Micro Devices.
Then there are lawmakers totally flubbing the next fiscal response to the COVID-19 pandemic. Indeed that will bring risk to headline macroeconomic data later this month and into October. The market has to price that in. And last but not least — and no less important — is a November presidential election that may not be decided on Election Day.
Like we said, pick your poison.