October surprise for US stocks? This veteran fund manager is delivering a startling warning

The US stock market is already reeling because of increasing recession fears, coupled with the major uncertainty surrounding the US elections, that could increase over time before November, when the polling for the Presidential elections commence. Meanwhile, veteran fund managers are highly concerned about the condition of some popular stocks this month itself.

What could happen to S&P 500?

S&P 500 has already bore the brunt of the September mayday, something that has been witnessed for decades now, but it was expected that things could turn for the better later in October. However, things are not showing any major sign of improvement at this point, as S&P 500 is quite destined to continue through the year on a low.

According to Louis Navellier, founder and chief executive of Navellier & Associates. October this year, has the potential to bear more than a few surprises this time, and Dow Jones, S&P 500, Tesla and other premium stocks may fall prey to the effects of the volatile condition of the US stock market.


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Is stagnation creating major worries?

The concept of stagnation has always bothered market analysts and financial experts across the world and considering the fact that the US stock market is at play here, things are going to get more complex hereon. Spending intention on housing has continued to climb in recent weeks, which is a mixed sign as of now, but there is no major worry around the same at this point.

Even though the stocks are seeing a relief rally in this early October period, thing can get a lot worse in coming days if things are not catered to, and the market keeps up with its volatile state.

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FAQs:

Could the US economy head towards a recession?
The US economy could easily move towards a recession situation if necessary measures are not taking to halt it in its proceeding path by the Fed.

Has the Fed introduced rate cuts?
Yes, the US Federal Reserve introduced major interest rate cuts last month, which is a majorly good sign of an aggressive approach to correct the condition of the US economy.