In fact, the S & P 500's now-6% decline from its cycle peak began almost too perfectly, exactly as the often-tough month of August got underway, continuing into September, the worst month for stock performance through history.
Similar reassuring stats are spit out when accounting for years when the S & P 500 was up more than 10% through July, or for pre-election years.
The S & P 500 was oversold by some short-term measures, such as fewer than 15% of S & P 500 stocks sitting above their 10-day average price.
That makes sense for sure, though it has meant that the equal-weighted S & P 500 is up only 1% this year and has tentatively broken a multiyear uptrend, while small-cap stocks are suffering worse still.
And even for the market-cap-weighted S & P 500, the forward P/E is down from nearly 20 to 18 since late July, as prices have fallen, and analysts' forecasts have continued to plod higher.
Persons:
doesn't, Ryan Detrick, there's, Goldman Sachs, abetted, Jerome Powell, It's, Ed Clissold, Ned Davis, Clissold
Organizations:
Carson, Treasury, Fed, Ned, Ned Davis Research
Locations:
Friday's, U.S