US stocks post best September since 1939

Financial Times:

US stocks concluded their third best month in the past 10 years, but the rally has been accompanied by rising pessimism on the part of some investors.

The S&P 500 index registered an 8.8 per cent gain while short sales – bets the market will fall – were also surging, according to the most recent data.

The contrast between the bullish increase in absolute stock prices and the bearish rise in short interest left analysts scratching their heads.

“The market is dominated by huge betting from both sides, and this tug of war in strategy reflects the uncertainty over the direction of the market and outlook for the economy,” said Jack Ablin, chief investment officer at Harris Private Bank.

Although the S&P 500 fell 0.3 per cent on Thursday, its 8.8 per cent rise last month marked the best September since 1939. In recent years, the only better months came when stocks rose 9.4 per cent in April 2009 and 9.7 per cent in March 2000.