5 Utility Stocks To Beat The September Blues
Zacks Investment Research | Sep 08, 2016 10:41PM ET
September has historically been the worst month for the stock market. While several theories for this uncanny phenomenon have been doing the rounds, the most common notion is that investors take time off during the summer months, leading to an overall decline in trading volumes.
As it is, the global market is far from being stable at the moment, thanks to possibilities of a rate hike, uncertainties surrounding the Presidential Election in the U.S., the ongoing volatility in oil prices and sluggish growth in China.
Oil price volatility has been hurting oil-based economies and since we presently live in a global village, the drop in growth prospects in some nations affect global growth. Recently, Russia and Saudi Arabia have entered in a pact to control oil prices by adjusting production volumes.
The oil supply glut has also affected big players in the U.S. energy industry. In addition, manufacturers are suffering due to a strong dollar, which is leading to higher product pricing. If the dollar continues its post-Brexit bull run, export prospects of U.S. manufacturers could be significantly hampered. Due to these concerns, the World Bank lowered its 2016 global growth forecast to 2.4% from the January projection of 2.9%.
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