This Strategist Has Been Right About the Stock Market. How He Sees the Year Ending.

After a strong rally, the stock market's rapid climb stalled in August, which could be seen as a relief as a choppy market with periodic downturns is more sustainable and advantageous in the long run.

Stocks started the final week of August on a positive note, but September is historically a bad month for stocks and analysts are warning of more turmoil ahead for the market.

Stocks gained momentum on Tuesday as new data pointed to a cooling labor market, with the S&P 500 and Dow Jones Industrial Average rising, bolstered by a decrease in job openings and a reversal in consumer confidence. The Nasdaq Composite led the gains, while the upcoming key reports on inflation and payrolls will likely shape investors' expectations for the Federal Reserve's interest rate decisions.

Stocks bounce back after weak job opening data, but achieving positive returns for the month remains uncertain due to market uncertainties and unanswered questions about the strength of the consumer and investor behavior. Hedge funds are increasingly taking on risk, but are still below exuberance levels, according to Société Générale.