Why the Stock Market Rally Is Bad NewsBen Steverman
Already, the stock market has shown the tendency to experience drawdowns in the midst of a larger rally. The S&P 500 slid about 8% over the course of a few weeks this summer, before rebounding and hitting record highs. But everyone knows it’s just a matter of time before the next dip...
stocks are highly volatile. When NGDP growth is relatively predictable, then stocks merely react to real fundamentals. As a practical matter, AD uncertainty is most pronounced when NGDP is far below the level the stock market (or the public) would prefer. In that case, stocks...
Thebanking sectorwas broadly lifted after last night's election of Donald Trump and a potential Republican sweep of Congress. The across-the-board rally for financial stocks appears to be due to enthusiasm over the prospect of greater financial deregulation, with perceived "riskier" financial sto...
Regional banking stocks are on pace for their worst year back to 2006, with the long tail of the SVB collapse. But bank stocks had been in rally mode since May, when First Republic was seized by the government and sold to JPMorgan, until bond rating agencies began issuing August ...
Tuesday's rally also pushed the S&P 500 above its record high set on Nov. 16. WHY PAY ANY ATTENTION TO THE DOW, THEN? One thing the Dow’s final leap to 30,000 indicates is that it’s no longer just tech stocks driving the market. ...
For reasons that will become clear in just a minute, Hershey stock—and the company behind it—is a screaming buy at these prices, even after the recent rally. Even without any financial analysis of the business, investors can lean on this fact: Hershey’s management decided to reject the ...
Yet the long-time voice of caution argues that the market’s current rally has already accounted for that and then some—in short, it has “simply over-shot.” Bulls will argue that the current gains are underpinned by fundamentals—consensus estimates call for the S&P 500’s 2025 earnings ...
an artificially large amount of capital to chase after domestic investments, inflating property and stock prices. It’s the same scenario China pursued in late 2007, before its stock market lost two-thirds of its value, but that era was characterized by monetary restraint compared with today. ...
Last Friday the market closed on a high note with a rally off the lows of 05/12. This was a bullish sign, yet the rally also pushed prices into a resistance area. The mixed sentiment from traders can be seen in today’s major indices with an inside day pattern found in the Russell ...