Where Is the Stock Market Headed in the Second Half of 2020?

Where Is the Stock Market Headed in the Second Half of 2020?

Posted On July 2, 2020 3:13 pm

There’s no denying the first half of 2020 was a wild one from but a societal and financial standpoint.

qqq stock market chart 2020

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

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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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