The Week Ahead: Are Global Markets Warning Investors? |
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March 06, 2016 |
March 2016 Bond Updates
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The stock market recorded another nice week of gains as the burst of upside momentum was needed to confirm the February bottom (The Week Ahead: Is There Blood In The Streets Yet? ) as the major averages are now back to more important resistance. Some may forget that just three weeks ago the S&P 500 hit 1810 and it has now moved above the 2000 level .
Most have not forgotten the angst of the January drop in their stock portfolios and while those that held on have now recouped some of their losses those who sold during the decline are now facing a tough decision. I was not expecting the extent of the stock market drop at the start of the year but the technical readings and very negative sentiment by January 15h convinced me that selling into the decline was not the best strategy.
A week after the January lows I was looking "for a rally to the $198-$200 area". I had concluded that " the recent drop does not seem like the first phase of a new bear market" and that stabilization ion crude oil should help fuel a significant rebound. It is important for investors to remember that after the 21.6% correction in 2011 the S&P 500 took six months before it again made new highs. Patience is still a key trait of successful investors.
Should investors be worried about the global markets?
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View more at: http://www.forbes.com/sites/tomaspray/2016/03/05/the-week-ahead-are-global-markets-warning-investors/
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