Contact Us

Will the Stock Market Sag in September? [POLL/AUDIO]

The stock market dropped significantly in August, and many Garden State investors are wondering what’s going to happen in September.

Dow Trading Below 15,000 After Several Days Of Losses
Spencer Platt, Getty Images

New Jersey’s top economist believes there could be more bumps in the road.

“The Fed has been buying bonds in order to keep interest rates at extraordinarily low levels – and those low levels have stimulated the housing market and other parts of the economy, but they feel now that the economy may be strong enough to wean it off those low interest rates,” said James Hughes, dean of the Bloustein School of Planning and Public Policy at Rutgers University

He said stocks may take a significant dip if the bond-buying stimulus program is ramped down because “the stock market hates uncertainty, and the fact that the Fed really is doing a major course change here for the first time in four years breeds uncertainty.”

Hughes said in anticipation of the bond-buying stimulus program winding down, mortgage interest rates have already increased.  There’s also been a reduction in housing activity across the nation.  “The fear is the rising interest rates will lesson corporate borrowing, and have a negative effect on residential real estate.”

Another problem is the uncertainly in Syria.

“It could have a negative effect or it could have no effect,” said Hughes.  “We may not know for a month or two how this is going to play out.”

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.



Best of WOBM

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for WOBM Listener Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive WOBM Listener Club contests, events, coupons, presales, and much more delivered to you for FREE.