I would like to offer up one possibility about next month. Specifically, I believe that the earnings reports are going to start to make crystal clear to the investing public that the tide has turned, and it is no longer a good time to be in stocks. I suspect an important selloff will gain acceleration as one bad report follows another.
But here’s the interesting twist: it just so happens that the next FOMC announcement and press conference is on July 27th, which is right at the tail end of the meat of the earnings season. In other words, about 80% of all the really cool and interesting companies will be done reporting. If, in fact, the market is getting blown to smithereens, it makes a certain amount of sense that the Fed will pull something out of its hat at that meeting to stem the flow of blood.
It’s just a thought.
