I Know What You Did Last Summer was a suspenseful horror hit in the late 90s. Millennials may remember the movie and its sequel starring Jennifer Love Hewitt and Freddie Prinze Jr. The story follows four teenagers involved in a hit-and-run accident and a killer seeking revenge for an apparent murder the teens committed. A year after the accident, the teens begin receiving ominous messages from the mysterious killer.
Today’s stock market has a bit of that same feel. Recall it was last summer when the S&P 500® was in the throes of a correction. Equities peaked in late July – during the heart of the Q2 earnings season – and would go on to bottom the following October. The pullback was nearly as textbook as it could get considering that US large caps dipped 10% over the course of three months before resuming a broader uptrend.
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