It has been a tug of war between the bulls and the bears so far in September. The SPY is down 1.45% for the month although it was actually up as of this morning. But a good start ended in terrible fashion as the market fell 2.27% from open to high. Aside from China, the market is waiting on the Fed’s decision next week in regards to an interest rate hike.

Personally, I think a small 1/4 point hike is needed and would be a long term positive. We need to get the economy operating based on normal market forces, not artificially low rates. The job market appears strong enough to support such an increase, today’s JOLTS report shows more job openings and tight labor markets. The US economy is doing well. Savers have been starved by a zero rate policy. It is time for a slow (very slow) liftoff of rates.

But another obstacle that hasn’t been spoken about but is now on the near term horizon is the possibility of a government shutdown late this month. Certain politicians may grandstand and essentially force the government to close down.

Given the volatility in the market and the fears about China and the Fed hiking rates, a self-induced wound is something we could do without.