- Global Growth Slows -- Mixed and uneven data suggested that global economic growth headwinds would not result in the expected second-half acceleration in GDP.
- Emerging Market Concerns -- Investors, anticipating higher U.S. interest rates, have disintermediated emerging markets, serving to rock the economies of countries that rely heavily on foreign investment (e.g. Indonesia and India).
- QE Loses It's Effectiveness -- Growing evidence that excessive easing is a blunt tool to catalyze growth.
- Fed Tapering -- It has grown increasingly likely that a September tapering is in the cards.This, too many (including myself), would qualify as a policy mistake (owing to the domestic economy's inability to reach escape velocity.)
- Still Tepid EPS Growth -- Disappointingly slow corporate profit and sales growth, particularly excluding financials.
- Rising Interest Rates
- Valuations Stretched -- Expanded price earnings multiples in the face of weak sales and earnings growth.
- Growing Geopolitical Risks -- The growing likelihood of a U.S. military attack on Syria.
- A Divided Washington D.C. -- A heated debt ceiling debate looms ahead.
- An Imminent Tapering -- Subject to data.
- The Fed -- Uncertainty as to who will be the next chairman of the Federal Reserve.
- Weak Technicals -- There were numerous troubling technical signs that were being ignored.
Kass: Short-Term Market Outlook Improves
Sep 04, 2013 | 06:00 AM EDT
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