Where Is the Stock Market Headed in the Second Half of 2020?
By: Steve Smith
There’s no denying the first half of 2020 was a wild one from but a societal and financial standpoint.
Historically speaking, “v” bottoms bode well for future returns over the next 6-12 months. The typical six-month return for the index is around 6%. Every time frame below shows a higher average return and percent positive than what is typical for the index. This means it is a good time to buy stocks.
On the financial front, we’ve witnessed the steepest and quickest bear market, a full 35% decline in a mere five weeks, only to only be followed by the best 50-day performance ever; a rocket right back up to highs. If there ever was a picture of a ‘V” bottom in the finance books the chart from March to June would be prominently placed. On the other hand, the stock market recovery has left plenty of pundits scratching their heads as they point to still record unemployment, souring bankruptcy filings, and the mere fact the Covoid-19 virus is still spreading causing not just delays in reopening but actual backtracking of re-closing.
So… Continue reading at StockNews.com