August has not been very favorable for the market, which Jim Cramer has already anticipated, citing historical records. However, now as September begins, investors have optimistic hopes, especially around the FOMC Meeting time, but Cramer leaves a serious warning, adding that “September Is Seasonally Weak.”
Jim Cramer Predicts Bumpy Market Due to Macroeconomic Factors
In an X post, Mad Money show host Jim Cramer has left an indirect prediction for investors, asking them to anticipate volatility ahead. He openly adds that September is seasonally weak, and historically, this month is considered the weakest for U.S. equities.
- Source: X, Jim Cramer
Even analysts call it the post-summer portfolio rebalancing and similar names, suggesting that it’s not a new trend. Since 1950, the S&P 500 has seen more negative returns in September compared to others, earning the nickname “the September Effect.”
Notably, this prediction also works for the crypto market, since the Bitcoin price has also declined this month historically. With his X post, Cramer has presented a look into the history and has reminded investors of the volatility, especially as inflation numbers and a tough Labor number may bring turbulence.
Jim Cramer Unveils Top 2 Factors for Bumpy Market
The U.S. The Fed’s decision on the interest rate cut is a major factor that always impacts the financial markets. The prime example is the multiple crypto market crashes in August due to the Fed’s unchanged rate decision in July, followed by various macroeconomic events like PCE, which could affect their upcoming decision.
Today, the CME FedWatch data shows almost 90% chances of interest rate cuts in September, which is why the financial market is up. It includes Gold and Bitcoin price rallies; however, the upcoming inflation data and labor market numbers can make or break it.
- Source: CME FedWatch
Interestingly, Jim Cramer agrees with the same, as he added that these two macroeconomic factors can stir the volatility. Inflation data is important because the Fed will consistently consider consumer prices for its decisions. If there’s any upside in inflation, it could delay rate cuts, affecting the crypto and stock market.
Secondly, a “tough” labor print is also concerning as it could create concerns around the economy’s underlying strength. Overall, Cramer believes that these two data points will drive the Fed’s next move and the performance of financial markets.
However, he also added that Trump’s presidency can defy the seasonality, as the administration’s actions and support for the market could decrease the volatility.
Ultimately, he is suggesting investors exercise caution; however, he is also urging them not to assume that September will certainly crash.
Frequently Asked Questions (FAQs)
Jim Cramer called September the “seasonally weak” month based on historical trends.
Due to various macro data releases this month and their impact on the Fed’s interest rate decision, September could turn bearish.
Inflation data and the Labor report could bring volatility to the market, so investors must watch out for them.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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