It was another wild and quite volatile week in the global markets, but once again those bullish on the US stock market won out. Though there has yet to be any solution in the Ukraine crisis, the initial fear that it will develop into a global crisis has subsided for now.
The sharp drop last Monday frightened some out of their long positions and encouraged the market skeptics. Meanwhile, investing legend Warren Buffett, hardly a market timer, pegged it as a buying opportunity.
This view was confirmed by the new all-time highs the following day as those who went short, Monday, were punished on Tuesday. The new all-time highs in the NYSE Advance/Decline made this sharp spike in selling characteristic of a pullback instead of the start of a more significant correction.
In terms of back-to-back months, we are entering one of the strongest periods of the year. Over the past 63 years, the average gain for March and April is 2.49%. Stocks have been up these months over 66% of the time. So what is next?
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