Market Bump Reviews

Market Bump Reviews
Market Bump Reviews

Market Bump Reviews: The stock market will enter 2021 with favorable trends. Vaccines are supposed to hinder the spread of Covid-19. S&P 500 earnings are expected to continue to rebound. The Federal Reserve has assured the markets that it will not raise interest rates. And President Donald Trump has just signed a new round of fiscal stimulus into law.

Market Bump Reviews

But the stock market, a forward-looking animal, seems to have been priced in a stronger economy and the end of the coronavirus pandemic. This raises the risk that any disappointment in the recovery will stifle investors, especially the S&P 500, which is about 60 percent above its March 2020 lows.

Market Bump Reviews
Market Bump Reviews

The risk of high expectations is difficult to measure, but in many sentiment gauges, a bubbly market is showing up. Since Nov. 20, the put-call volume ratio has been below 0.6 almost every day, the longest stretch in at least eight years. When the ratio was below 0.6, this opposing measure also flagged at least small market declines.

Market Bump Reviews
Market Bump Reviews

According to the research company, the Investors Intelligence survey of market newsletters in late December showed a bull-bear distribution “well in the danger zone,” Since January 2018, just before the market tumbled into a whipsawing correction, a spread of 48 percent in early December was the largest. Investors Intelligence suggests that investors take defensive action.

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