That creaking sound you hear is the stock market struggling under the weight of both geopolitical troubles and political troubles. Think about it — our colossal trade war with China, the increasing probability that England will have a messy crash-out of the European Union, the Mid-East is being realigned as we watch in real time, not to mention North Korea and climate change — that’s a lot to worry about. Did I mention rising interest rates here or the falling Italian bond market? Plus, October is traditionally the ugliest month of all for Wall Street. Plus, increasing uncertainty going into the November mid-term elections scares investors away from the Street. Yes, Wall Street is making creepy, creaking noises, but is it going to crack? Nope!
As long as economic data and corporate earnings remain strong, Wall Street will merely c-r-e-a-k . . . but not c-r-a-c-k!