Roll out those lazy, hazy, crazy days of summer
those days of soda and pretzels and beer
roll out those lazy, hazy, crazy days of summer
Dust off the sun and moon and sing a song of cheer
-Nat King Cole
It was another tough session, but a walk in the park compared with the previous week. Investors are entering September musing about those lazy, hazy days of summer that never materialized last month. The month of August saw the Dow Jones Industrial Average down 4%, its worst month since 2012. So, we enter a new month with a glass jaw and lots of confusion. For all the hoopla that’s accompanied news coming out of China, investors need to focus on the domestic economy.
As for China, its purchasing managers’ index (PMI) numbers show the fastest pace of contraction in three years, although there was a sigh of relief when its manufacturing number came in at 49.7, in line with consensus. However, the non-manufacturing number of 53.4 points to an expansion in the service sector.
There’s a lot of data to sift through for American investors this week, including the jobs report on Friday. Reactions to news will be swift as Monday’s reversal in oil that sent shares in sector soaring. I like a lot of the names in that space.
Oil Report Warren Buffett has called the oil rout over and has put his money where his hunch is. I have a few hunches too, and think there will be a fortune made for long term investors. To that point, I’ve updated our Oil Report. For a copy, contact your representative or click here to download the report PDF. Charles Payne Founder & CEO Wall Street Strategies |
Summer isn’t officially over, but the days are numbered. There’s still a chance that investors will be able to “Dust off the sun and moon and sing a song of cheer,” but get used to wild gyrations until most questions are answered.