September is usually the worse month of the year for the stock market. But, the worse week of the year is usually the week in September having the third Friday. Grab your calendar and you’ll see that we’re right now in the middle of worse week all year, historically. One reason is that the “triple witching” or expiration of futures contracts and other derivatives. That makes the week more volatile, which lowers confidence, which is not good for the stock market.
In addition, we have two off-year elections (Virginia and New Jersey) that are prime indicators of changes in the electorate. Normally, the market would do better if Republicans win but, with the growing fear of Trump, the stock market may be different this year.
More importantly, there is a looming debt ceiling crisis, which is a stupid man-made problem that serves no purpose and also lowers confidence. I’ve often heard there would be no need for Christianity, if there was no concept of hell. Then, is there any reason to have a balanced-budget, if Modern Monetary Theory makes any amount of deficits acceptable.
If the market gets ugly in the near future, just think about the traditional “Santa Clause Rally.”