Navigating Market Turbulence: The SP500 Slide and Macro Complexities

August 28 2023 Update

The SP500 is about -5% from its last peak in late July. However, a lot of damage has been inflicted beneath the surface, particularly on stocks highly sensitive to changes in interest rates.

Below is the 10-Year Treasury bond that has been ascending since late May due to expectations that the Federal Reserve's hiking cycle isn't over yet.

The latest Consumer Price Index (CPI) report witnessed a minor inflation uptick, and the projected number for August is again indicating an upward trend.

The overall economy is emitting signals of strength, which isn't good news for rates and inflation.

It's a very intricate economic backdrop that has perplexed economists and investors worldwide. Initially, they were predicting a recession in 2023, but now most are in the "no recession" camp.

August through September tends to be unfavorable or less favorable months for…