Beware The ‘Acute,’ Multifaceted Seasonal Liquidity Drain

I've talked a lot about a challenging late-September seasonal for equities. And I've talked a lot about the extent to which that seasonal might've been "pre-traded" this month. More generally, September's the worst month of the year for US stocks, and if the post-Labor Day swoon was any indication, 2024 isn't likely to escape the curse. In a Wednesday note, Nomura's Charlie McElligott illustrated the September back-half downtrade recurrence (and also the market's recent penchant for front-run