The September Effect says the stock market tends to slump after Labor Day. This year’s Effect would likely be triggered by the bond market.

JP Morgan CEO Jamie Dimon says the stock market is overvalued and overleveraged. In July, he said bonds were overvalued too, with10-year U.S. Treasury Notes yielding only 4.5%. Since then, the 10-year has hit 4.75%.
Stock prices are based on prevailing U.S. Treasury rates used to discount future company earnings; the higher the rate, the lower stocks’ value. Also, Treasuries are competitive investments; the higher their yield, the more attractive they become – to a point.
Dimon’s remarks are concerning. So are recent statements by other prominent figures in the world of finance.
Last April, former U.S. Treasury Secretary Hank Paulson issued a dire warning.













