Merril/Bank of America: The August Market Meltdown in Perspective

Merril/Bank of America: The August Market Meltdown in Perspective: Volatility made an unmistakable return to the U.S. stock market this month. August kicked off with a three-day selloff in U.S. Equities, building off market turbulence that started mid-July. It was never a matter of if but when the stock market would see volatility pick up again though, since U.S. Equities had been in an extended period of calm. Even with a recent cooldown in selling pressure, the shadow of the early-August meltdown looms over the equity market. Of course, not all selloffs are the same, but history may offer some perspective on navigating periods of elevated market volatility. For one thing, August tends to be a historically weak seasonal period for the S&P 500, but a strong first half is typically a positive signal for a strong second half. Volatility also tends to be clustered. The S&P 500 registered both the largest daily decline and gain since 2022 at the start of this month. We consider more historical U.S. equity market observations below. Læs hele analysen her

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