Investors may face a difficult period in the next eight weeks. Some experts predict a 7-10% drop in the market, linking this to a number of factors that may cause concern to investors. Among them is the upcoming meeting of the Federal Reserve System, where interest rates are expected to decrease. However, analysts note that too deep a rate cut may be perceived negatively, associated with the risk of recession. Also, the market sentiment will be affected by the report on the state of the economy, which may be weaker than forecasts. Even if the report turns out to be better than expected, stocks may react with a fall, and investors may reconsider their expectations for interest rates. The instability associated with the upcoming elections may also force investors to act with caution. September is traditionally a difficult month for stocks, and in an election year, seasonal volatility can drag on until mid-October. Despite these challenges, some investors see the upcoming drop as an opportunity for profitable purchases. They believe that after the situation clears up, the market can recover, and the rally can begin after the elections.
