What To Expect From Stocks For The Rest of the Year

What To Expect From Stocks For The Rest of the Year

According to Tony Dwyer of Canaccord Genuity, which tracked market returns back to the 1950s, when the S&P 500 is up this significantly through October, the average return through the rest of the year is more than 6%.

This has happened seven times in that period with all seven times leading to strong gains through the rest of the year. The median return is 5.92%. Besides, Canaccord went on to say that history also shows that pullbacks are typically short-lived and should be bought.

This is great news for investors. The best part is that it is achievable.

Dwyer went on to say: “stocks keep ripping higher because historically low inflation gives the Fed more leeway for continued aggressive easing. Despite some overhang from trade and the steepness of the yield curve flashing recession signals, economic activity is strong, and that drives earnings and rallies the market. The message is clear — use any pullback as an opportunity to add exposure.”

This matches my view that I have been sounding off for months now. Namely is to ignore the headlines, which are never positive and focus on earnings. Stocks typically follow the direction of corporate earnings, and earnings have been coming in far better than expected.

Of course, significant risks are more present than ever and investors, especially those in retirement or the retirement red-zone must still approach investing their nest egg cautiously. After all, this money cannot be replaced this late in life.

For a free consultation on solidifying your retirement master plan and investing tactically so you can get the best returns with the least risk possible, give us a call today.

“Invest for need, not for greed!™”

Cheers -Keith

916-925-8900

Smart Money Newsletter

Written By: Keith Springer

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