August Has a History of Crushing Dreams for Stock-Market Bulls
- U.S. stock-market routs are frequent occurances this month
- BNY says that global risks are growing during a dicey time
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August has a history of quashing investors’ illusions of a quiet summer. And there’s enough risk hanging around this month for it to happen again.
The long list of concerns weighing on markets -- from trade wars to Brexit -- got longer in the past week with the political spat between Canada and Saudi Arabia, new U.S. sanctions planned for Russia and the rout in Turkish assets. While these have been mostly shrugged off by U.S. investors, they could leave global assets in a precarious position amid the usual summer downturn in liquidity.