Fed, Bond Yields Could Trigger Correction
In a podcast on Aug. 5, Cowen noted that the S&P 500’s advance to roughly 7,750 remains consistent with previous U.S. midterm election years, when equities continued setting records through August or September before entering a meaningful correction.
Cowen believes the stock market could remain bullish for several more weeks, but expects the risk of a correction to increase from mid-August through September.
He highlighted the Federal Reserve’s Sept. 16 meeting as a possible catalyst.
A hike could pressure risk assets by signaling that the previous easing cycle has ended.
