The stock market might be discounting a great deal of the bad news and forecasting a recovery sooner than most people expect.
We need to see two things happen before confidence starts to turn: 1) A decrease in the number of cases and deaths 2) A vaccine for the virus or at least some drug to be developed that can slow down the symptoms.
Overall, we are in an equity-friendly environment because the economy is growing, the consumer is strong, and the global central banks are on the market’s side.
The Dow Jones Industrial Average will reach 30,000 before the next presidential election for the following reasons, according to Joe Fahmy.
We are in a strong, secular bull market. It will most likely end with more acceleration to the upside, according to Joe Fahmy, managing director of Zor Capital.
I often get asked “What’s the first sign you look for to tell if the market or a stock is healthy?” I always answer, “If it’s above its 200 DMA.”
We saw an ugly correction in Q4 of 2018, but the Enterprise Software sector showed great relative strength during that time.
Joe Fahmy predicts that Q1 of 2019 is the market will see 7%-10% downside before it eventually bottoms and we start a sustained uptrend later this year.
Market participants need to be reminded that the main two drivers behind the stock market are earnings and interest rates — not politics.
The summer will likely be volatile and see little progress but we will eventually break out of the current range and see a sustained move higher.
There’s a consistent pattern that occurs in market sentiment. When the market starts to pull back, many sentiment measures move to bearish extremes.
There is an overwhelming feeling among market participants that this Bull Market is about to end any day now — but the bull market can go on much longer than anybody expects.