CNBC’s Jim Cramer stated Wednesday he sees a variety of worrisome components which are prone to contribute to market volatility in September, past simply the actual fact it’s a traditionally powerful month for shares.

This is what the “Mad Cash” host is anxious about:

This week, three corporations — paint makers PPG Industries and Sherwin-Williams, in addition to homebuilder PulteGroup — issued pre-announcements to decrease steerage about their present quarters, warning that offer chain issues and supplies prices are inflicting challenges that would result in worse-than-expected outcomes.

“The excellent news? None of their shares acquired crushed as a result of demand’s nonetheless in good condition. … They’re nonetheless getting enterprise,” Cramer stated. “The unhealthy information? These provide issues, they are not going away—looks as if they’ve grow to be ingrained.”

Strain on Federal Reserve Chairman Jerome Powell to alter his stance that inflationary pressures are transitory might intensify all through September, Cramer stated.

Whereas that viewpoint is why the Fed’s extremely accommodative financial coverage stays in place, Cramer stated that “after these preannouncements the place we preserve listening to about rising uncooked prices, do not you must marvel if inflation is extra intractable than they thought?”

Elevating rates of interest could be the “magic elixir” to tamping down inflation, Cramer stated. “However they try this by destroying demand and that crushes earnings, which in flip crushes shares.”

“If charges are headed larger, that creates extra competitors for high-yielding dividend shares. As of late, not many shares are supported by their yields, however there will likely be even fewer if charges go up,” Cramer stated.

The “Mad Cash” host stated there is a little bit of a double-edged sword involving the Democrats’ want to cross their $3.5 trillion finances reconciliation bundle.

That stage of spending would certainly create jobs and “supercharge the financial system,” Cramer stated, however it comes at a time when there’s already greater than 10 million job openings within the U.S. Because of this, wages would probably go up as corporations struggle for staff, he stated, “which is nice for those who work for a dwelling however unhealthy for those who personal shares.”

“Nonetheless, if that massive stimulus bundle will get killed, the traders who’re relying on it and what it could do to corporations they personal, effectively I’ve acquired to let you know, these individuals could be dissatisfied. With out this, you possibly can’t prop up the cyclicals,” Cramer stated.

New corporations going public by means of particular objective acquisition corporations or conventional IPOs are including provide of shares to the market, which might serve “as a moist blanket dousing the fireplace of the patrons,” Cramer stated.

“After all, this IPO cycle will finally play out like they all the time do: with a sell-off that lowers all costs to ranges the place shares are extra engaging,” Cramer stated. “We can not seem to cease this deal move.”

Cramer stated he stays involved about China and the unpredictability of President Xi Jinping, notably because it pertains to Taiwan, which performs a vital function within the world semiconductor business.

“This is the underside line: On the finish of the day, I feel we will cope with any of those points, however not suddenly—not less than not with out decrease inventory costs,” Cramer stated. “And decrease inventory costs is what September is all about.”